While hiring a PEO can help a business save time by outsourcing payroll and general HR needs, it’s also important to point out that hiring a PEO can also save a business money. Here are the top ways PEO’s save you money:
- Reduce your workers’ compensation rates – Most small businesses receive more favorable pricing on workers’ compensation premiums through PEO’s, in part because PEO’s gain group buying power from an expanded client base. A PEO like FrankCrum who owns its own workers’ compensation insurance carrier, can be even more flexible with pricing than insurance carriers on the open market.
- Offer you group rates on employee benefits – PEO’s enable clients to offer top employee benefits plans from national providers, cost effectively. Examples are group health, dental, vision, 401K, flexible spending accounts, and supplemental insurance. A lot of these plans do NOT require employer participation.
- Reduce your unemployment tax burden – in some cases and in certain states, PEO’s can extend state unemployment tax rates (SUTA) that are lower than a client's business can get on their own.
- Increase efficiency – PEO’s take a large amount of time-consuming HR related tasks off a company’s hands. This frees business owners and managers up to focus on business performance and growth.
- Improve your cash flow – PEO’s collect workers’ compensation premiums with weekly or bi-weekly payroll payments. Businesses who buy workers’ compensation outside of a PEO arrangement typically pay the annual premium up-front, or at least a large down payment with subsequent payments. They also pay an annual audit fee, which PEO’s like FrankCrum don’t charge.
- Reduce employee turnover – working with a PEO allows employers to offer a sense of security by providing flexible payroll options, a self-service interface, attractive benefits plans, retirement options and a safe working environment.
For more information on how FrankCrum can help your company save time and money contact us at firstname.lastname@example.org or (800) 277-1620.