If you run one of the 30.2 million small and medium-sized businesses operating in the United States today, according to the SBA report, you know there are complex challenges to overcome to keep your business going. Sometimes these challenges can be overwhelming for a business owner to handle on their own. For this reason, many business owners turn to professional employers’ organizations (PEOs) to help solve the many human resource problems that arise in growing businesses.
One area many small businesses face is workers’ compensation claims. Fortunately, PEOs can offer tools and expertise to compensate workers that many business owners lack.
Understanding the Co-Employment Obligations of a PEO
When you work with a PEO, you sign a contract known as a collective bargaining agreement. This collective bargaining agreement allows the PEO to perform certain human resources functions while he or she is the registered employer of your employees. You stay in control of your business, and the PEO controls many aspects of the business associated with working with your people.
Depending on the specifics of your arrangement, a PEO typically handles payroll, benefits administration, and risk management. Because your employees are also considered PEO employees, they can access higher health insurance plans offered to employers with multiple employees.
Likewise, PEOs can access substantial discounts on workers’ compensation insurance. These cost savings can have a significant impact on your monthly insurance premium. Depending on the PEO and your company, you may even see a write-off of advances your company has to pay for workers’ compensation.
PEOs Manage Workers’ Compensation Claims
As part of a co-working arrangement, a PEO helps ensure you comply with the constitution of both the federal and state governments in which your business operates. If your business spans state or requires frequent employee travel, complying with employee compensation laws can be a daunting task. In addition to all costs associated with employee compensation claims, employers who fail to comply with relevant laws can face heavy fines.
Once you have signed a collective bargaining agreement, all workers’ compensation claims go through the process established by your PEO partner. PEO has a dedicated claims management team to deal with any issues that may arise from workers’ compensation claims. This allows you to focus on your business instead of facing the pressure of being treated fairly and according to the law.
Working with a PEO Can Lead to Fewer Workers’ Compensation Claims
As the employer and responsible for the vast majority of liability for worker injuries, PEOs have strong incentives to reduce the likelihood of worker injury or illness. Like large corporations, PEOs can offer their small business partners tools they may not have access to. This can include:
- New safety protocols
- Mandated worker safety courses
- Employee drug screening
- Loss control procedures
These programs make your workplace safer for you and your employees. Therefore, implementing this policy may result in fewer worker claims.
Get Your Employees Back to Work Sooner
Your PEO partner will most likely help you create a payback program for all injured workers. They will help you arrange a changing work schedule if workers get permission from their doctor to return to work. This allows employees to stay invested in your company 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) reports that nearly 1,000 PEOs are employed across the country. These companies do not have the expertise or experience to handle the complexities of your business. Finding the right PEO for small business owners can take a long time to process workers’ compensation claims.
If you are interested in finding a PEO partner to assist you with your growing staffing needs, NetPEO is here to facilitate your search. As a PEO broker, we have a nationwide network of PEOs who can assist you with your staffing needs. We may refer you to a PEO with professional experience supporting businesses in your region and industry.
To get started with a free consultation, call us at (678) 841-7195 or contact us using the form on this website. Within 48 hours, one of our representatives will contact you to help you find a PEO who can help you process your worker’s compensation claim.