Workers’ compensation insurance provides medical costs and lost wage benefits for employees who are injured or become ill on the job. But what if your business is considering forming a Professional Employer Organization (PEO) relationship? Are you required to have PEO workers’ comp? The answer is yes. By law, workers’ compensation is required by all employers, even those organizations in a PEO relationship.
The PEO Partnership
PEOs help clients comply with regulations and reduce the administrative burden compliance places upon them. Oftentimes the PEO can provide services for substantially less than the client could do so on their own. Through a PEO partnership, businesses can lower costs and mitigate risks associated with many human resources-related functions, including benefits and payroll. Instead of completing administrative tasks, the company can focus its resources on growing the business.
Benefits of PEO Workers’ Comp
Businesses in a PEO relationship can realize many benefits related to workers’ comp administration. According to www.insuremyworkcomp.com, in addition to offering competitive PEO workers’ comp rates, PEO’s also own the tasks related to workers’ comp administration such as reviewing and filing claims. PEO’s can also implement safety or Return to Work programs that would otherwise be cost-prohibitive to the small business.
PEO Workers’ comp is a great option to consider when trying to reduce costs associated with administering workers’ comp.