10 Reasons Why You Should Consider Bringing In A PEO Broker
A professional employer organization (PEO) can be of tremendous benefit to small business owners who want to focus on core business processes while being certain that their human resources obligations are taken care of by committed professionals.
But not all PEOs are alike, and choosing one can be overwhelming. Fortunately, PEO brokers can step in to help businesses select the best possible PEO for their needs. Here are 10 scenarios in which you should consider bringing in a PEO broker.
1. Your Business Is Very Small
Some HR services providers won’t underwrite very small businesses. Suppose you run a small painting business and find that the payroll company you’re interested in won’t underwrite your business because of its size. A PEO broker can step in, assess all the options and help you find a PEO that offers the services you need and works with small businesses like yours.
2. Your Size Makes It Difficult to Find Workers’ Compensation Coverage
Maybe you own a small contracting business, yet your property and casualty broker is unable to find workers’ compensation coverage for your business. You can contact a PEO broker, who can help you find a PEO that works with small contractors in obtaining workers’ comp coverage. You may also find that the PEO offers other services that would be of benefit to you, like payroll or benefits administration.
3. Your Current PEO Has Gone Out of Business
If your PEO goes out of business, you could be faced with running a company that suddenly doesn’t have health insurance coverage. Should you find yourself in this difficult situation, working with a PEO broker can help you place coverage quickly, so you don’t risk losing your valued employees due to an interruption in benefits.
4. Your Current PEO Drops You Due to Your Health Insurance Plan
Another health insurance-related situation could be finding that your out-of-state PEO is dropping clients in your state, and you have a short time to move coverage. Bringing in a PEO broker is the best way to ensure that you won’t experience any lapses in coverage, and that you’re getting the highest quality services for your budget.
5. You’re Having Trouble Due to Past Workers’ Compensation Claims
If you own a thrift store, you may have workers who drive to people’s houses to pick up items they no longer want. Perhaps due to the physical labor involved, your business has had some workers’ compensation claims in the past. It can be hard to find a workers’ comp underwriter in this situation. But a PEO broker can step in and locate a PEO willing to underwrite your business, so you don’t risk problems with workers’ comp coverage.
6. You Find You’re Paying Too Much for Health Insurance
If you have a very small business, finding health insurance coverage can be a huge challenge. But if you contact a PEO broker to help you explore your PEO options, you could end up saving thousands of dollars. A PEO broker can help you determine whether you’re better off bundling services or selecting them individually – a process that can be daunting to the already-busy small business owner.
7. You Need to Avoid a Lapse in Workers’ Compensation Coverage
If you get a non-renewal letter concerning workers’ compensation coverage, you have 30 to 60 days’ notice before cancellation, depending on your state. Don’t wait. Contact a PEO broker as soon as you receive a non-renewal letter, and they can take all the relevant information and proactively find you the best coverage. In fact, a PEO broker can and should do an annual review of your workers’ comp coverage so you can avoid this type of problem in the first place.
8. You’re Starting a Brand New Business
If you’re starting a new business, you need drive, commitment, and passion for your line of work. But you may not have the expertise needed to take care of essential tasks like dealing with payroll and taxes. By working with a PEO broker from the start, you can maximize return on your HR investment, be confident back office functions are taken care of, and spend your time focusing on the reason you started your business, rather than on administration.
9. You’re Planning a Hiring Push
You want to hire the best talent, so naturally you want to offer a great pay and benefits package. But many small businesses on their own can’t afford to offer new hires generous benefits. A PEO broker can help you find a PEO that benefits from economies of scale, so that you can afford to offer new hires outstanding health insurance, retirement benefits, and other perks. Your PEO broker could be the key to being able to hire the talent that will make your business excel.
10. You Don’t Understand How Your PEO Costs Are Calculated
If you work with a PEO but don’t understand how your PEO costs are calculated, you’re not alone. PEO cost calculations can be complex. But when you work with a trusted, experienced PEO broker, you can get a clear explanation of exactly what you’re paying for every month, and a breakdown of costs that will let you select the PEO that offers you the most value for your money.
For small business owners, working with a PEO is smart. Not only can small business owners focus more attention on core business processes knowing that HR functions are taken care of, they can save considerable money by choosing the right PEO. An experienced PEO broker can be an enormous ally to the small business owner by obtaining a range of quotes, offering advice on bundling services versus buying them separately, and explaining how PEO costs are calculated.
A PEO Broker Can Help Make Your Life Easier and Your Business Thrive
SourceOne Partners has over 50 years of combined experience in the PEO and payroll industries, and every day helps small businesses like yours find the right PEO. Whether you need workers’ compensation underwriting, payroll, health benefits, or a specific combination of HR services, SourceOne Partners can help you out. We take the time to thoroughly understand your business and present you with the best choices in PEO services. Furthermore, we take the time to explain how your PEO costs are calculated so you understand exactly where your money is going. SourceOne Partners has offices in Florida and New Jersey and helps businesses in all 50 states find PEO solutions that help them grow and thrive. To learn more from a PEO expert, call 561-674-0748 or contact us online.