PEO’s offer an attractive way for employers to offer employees better health insurance coverage. However, it’s important to understand the risks associated with this type of arrangement. In addition, you need to consider the benefits.
PEOs work with thousands of companies. That means that they have access to a wider variety of products and services. This also helps them negotiate for better insurance rates. As a result, PEOs are often able to provide their clients with lower premiums.
Although PEOs can provide good value for many companies, they can also be legally implicated in cases of workers’ compensation claims. You should therefore check with your insurance provider before signing up with one.
In addition to offering better coverage at lower premiums, PEO’s can provide additional benefits. For example, some PEOs offer Employment Practices Liability Insurance (EPLI) to protect your business from employee-related lawsuits.
PEO’s can also help you manage your payroll. This service can reduce costs, increase revenues, and allow you to focus on other aspects of your business. Using a PEO can also provide an easier way to handle health insurance.
PEO’s can also provide unemployment insurance. This is different from social security, as it offers extra payment in case an employee is unemployed. It is usually funded by the employer.
Some PEO’s also offer group health plans, which are self-funded and sponsored by the company. These plans may be worth considering. But it’s important to verify coverage and the carrier’s ratings.