Should I use a PEO for my Workers Comp insurance?

Here are some things to consider when deciding whether to use a PEO for workers’ compensation insurance:

1. Cost: PEOs typically charge a fee for their services, which may be based on the number of employees or the amount of payroll. It’s important to carefully evaluate the cost of a PEO compared to the cost of obtaining workers’ compensation insurance on your own to determine which option is more cost-effective for your business.
2. Coverage: PEOs offer a range of employment-related services, including workers’ compensation insurance. It’s important to understand the terms of the insurance policy offered by the PEO and ensure that it meets the needs of your business.
3. Compliance: PEOs can help businesses with compliance issues related to employment laws and regulations. However, it’s important to understand that the PEO does not assume legal responsibility for compliance. The business is ultimately responsible for ensuring compliance with all applicable laws and regulations.
4. Control: When you use a PEO, you are entrusting the management of certain HR functions to the PEO. It’s important to understand the extent to which the PEO will be involved in these functions and whether you are comfortable relinquishing control to the PEO.

Overall, a PEO can be a useful option for small and medium-sized businesses that want to outsource HR functions and reduce compliance burdens. However, it’s important to carefully evaluate the cost, coverage, compliance, and control aspects of using a PEO before making a decision.