What Is A PEO Broker, and Why Does Your Company Need One?
Let’s first start out by answering what a PEO is. A PEO or Professional Employer Organization is a company that specializes in benefits “pooling”. What these companies do is take out workers’ comp insurance and health insurance policies with A rated carriers. They then start adding clients to these policies and in return each company receives a total purchase power of the entire group. This allows small and medium size business to obtain rates they normally could not obtain on their own.
Advantages to this model is that risk is spread throughout the entire group, which leads to lower year over year rate increases. Companies can utilize a workers’ comp modifier of the PEO and also the healthcare rates of the PEO. They can also use the PEO’s SUTA tax rate, which would be significantly lower if your company has high turnover.
So what is a PEO Broker? A PEO Broker is a person that represents many different PEO’s and brokers for many different companies. The advantage of working with a PEO Broker is that you only have to submit your information to one person and they can get pricing from many different PEO’s. This allows the broker to find the very best pricing and solution for the needs of the clients. They also know which PEO’s to avoid and which ones are right for certain industries.
A PEO Broker is a person that represents many different PEO’s and brokers for many different companies. The advantage of working with a PEO Broker is that you only have to submit your information to one person and they can get pricing from many different PEO’s.
IN SUMMARY WHY YOU SHOULD HAVE A PEO BROKER:
- Submit Confidential Information Once With a Broker
- PEO Brokers Have Leverage
- PEO brokers can compare proposals in different formats to evaluate how they do (or do not) meet your needs. It’s what they do.
- But they can also use their relationships with PEOs to negotiate better rates.
- In the end, you’re the consumer; you’ll get the best prices when providers compete for your business.
- You’re looking for a PEO to handle the benefits, payroll, workers’ compensation, and human resources so you can focus on your company’s product or service. A PEO broker is the first step in that process. By harnessing their knowledge and relationships with an ever-growing number of providers, a PEO broker can work with you to find the PEO that fits best — and do it as ethically as possible.