If you are one of the 30.2 million small and medium-sized businesses operating in the United States today, you know that there are complex challenges around you that need to be overcome. Sometimes it can be difficult for business owners to handle these challenges on their own. As a result, many business owners are turning to professional employers’ organizations (PEOs) to help address many of the human resource problems that arise in growing companies.
One area that affects many small businesses is buying employee compensation. Fortunately, PEOs can offer the tools and skills to pay for staff that many business owners lack.
Understanding the Co-Employment Obligations of a PEO
When you work with PEO, you sign a contract known as a collective agreement. This collective agreement allows the PEO to perform certain human resources functions while it is the registered employer of your employees. You stay in control of your business and PEO manages many aspects of the business related to working with your people.
Depending on the details of your agreement, the PEO takes care of normal pay, benefits management, and risk management. Because your employees are also considered PEO employees, they have access to better health insurance plans offered by multi-employee employers. PEOs can also gain access to rebates from multi-employee compensation insurance. These cost savings can have a huge impact on your monthly premiums. Depending on the PEO and your company, you can see a breakdown of the progress your company has to pay for employee compensation.
PEOs Manage Workers’ Compensation Claims
As a joint effort, PEO will help ensure that you abide by the constitution of the federal and state governments in which your company operates. If your company is occupied by the state or often requires employee travel, compliance with employee compensation laws can be a daunting task. In addition to all the costs associated with employees’ claims for compensation, employers who do not comply with applicable laws can face heavy fines.
If you have already signed a collective agreement, all workers’ compensation claims will go through a process set by your PEO partner. PEO has a specialized claims management team that deals with any issues arising from employees’ claims for compensation. It allows you to focus on your business instead of pushing you to be treated fairly and legally.
Working with a PEO Can Lead to Fewer Workers’ Compensation Claims
As employers and responsible for most of the liability for workers ‘injuries, PEOs have strong incentives to reduce the chances of workers’ injuries or illnesses. Like large companies, PEOs can offer their small business partners tools they may not have access to. They may include:
- New safety protocols
- Employee drug screening
- Mandated worker safety courses
- Loss control procedures
Thanks to these programs, your workplace will be safer for you and your employees. Therefore, the implementation of this policy may lead to less recruitment.
Get Your Employees Back to Work Sooner
Your PEO partner will probably help you create a compensation program for all injured workers. They will help you arrange for a change of work schedule if the staff receives permission from their doctor to return to work. This allows employees to stay invested in your business until they complete their recovery.
Get the Right PEO to Assist Your Small Business with Workers’ Compensation Claims
The National Association of Professional Employers’ Organizations (NAPEO) states that almost 1,000 PEOs work across the country. These companies have no skills or experience in managing the complexity of your business. Finding the right PEO for small business owners can take a long time to settle employees’ claims for compensation.
If you are interested in finding a PEO partner to help you with your growing staffing needs, NetPEO is here to make your search easier. As a PEO broker, we have a national PEO network that can help you with your staffing needs. We can refer you to PEO with professional experience who supports companies in your region and industry.
To initiate a free consultation, call us at (678) 841-7195 or contact us using the form on this website. One of our representatives will contact you within 48 hours to help you find a PEO who can help you process your employee’s compensation claim.