I just started with a PEO, and I had to pay a significant up front deposit for workers’ compensation collateral. I thought PEOs did not charge deposits and were pay-as-you-go. Do all PEOs do this now?
Some PEOs are now charging claim fees and/or placing deductibles for claims onto their workers’ comp policies. Some PEOs are requiring collateral payments in advance or placing money in escrow. Many PEOs do not charge these fees or deposits and do not require collateral. It’s important to shop around and make sure the deal that the PEO is proposing makes sense for your individual situation.