Your Guide to Worker’s Comp with a PEO
A Professional Employer Organization (PEO) is a company designed to assist small and medium size businesses to focus on core business operations. This is accomplished by taking the responsibilities of workers’ compensation insurance, payroll, employment taxes, employee benefits, risk management, and other human resource functions. The PEO becomes a co-employer and serves as your extended back-office.
Workers’ compensation insurance is a safety net for employers and their employees. In most businesses, workers’ compensation insurance is a requirement. As with all things in workers’ compensation, however, navigating the world of safety regulations can be complex and time-consuming. If you don’t understand all the ins and outs of workers’ compensation insurance and the Occupational Safety and Health Administration (OSHA) or lack the time and resources to administer your company’s program, you can greatly benefit from working with a PEO for workers’ comp solutions.
How PEO Solutions Help With Workers’ Compensation
PEOs have positive incentives to improve the viability and efficiency of the workers’ compensation system and to improve workplace safety, reduce work-related injury, and promptly resolve claims.
Here are some benefits PEOs provide for workers’ comp.:
Economies of Scale for PEO Worker’s Comp
Most PEOs take advantage of economies of scale to shop for and obtain workers’ comp insurance for their clients. They can do this by leveraging the collective number of employees they lease to different companies. With this, a PEO can get access to better rates and high-volume discounts on workers’ compensation insurance. Employee leasing through a PEO can be very economical because you pay less than what you’d have paid for standalone workers’ comp.
Pay-as-You-Go PEO Workers’ Compensation Programs
Obtaining workers’ comp insurance typically requires a significant down payment. This can be a burden to a small business owner. PEO workers comp experts can help you find a pay-as-you-go program provided by some workers’ compensation insurance providers.
Pay-as-you-go insurance is a set of installments that rely on real-time payroll to calculate premiums. It allows your liability to be spread between the year. Benefits of pay-as-you-go workers’ comp include:
- Pay accurate premiums based on your schedule
- Eliminate large payments and lower upfront costs
- Minimize the risk of penalties
- Improve cash flow and reduce the chances of audit balances at the end of the year
Workplace Safety Audits
Most workplace-related injuries and fatalities can be mitigated or prevented by regularly conducting workplaces safety audits. A safety audit is a methodical assessment of how the safety and health of workers are affected by various workplace activities.
A PEO can work with you to identify workplace safety hazards and mitigate potential adverse events. Safety audits offered by a PEO will match sweeping OSHA inspections with photos and full written reports showing any safety hazards.
Using the safety audit findings, the PEO will help you develop and implement best-in-class safety programs, optimize worker classification, and conduct onsite employee safety training. The primary goal is to lower your employees’ risk of on-the-job injuries and ensure your company complies with OSHA regulations.
Resolving injured workers’ claims is a complex and time-consuming task. By working with a PEO, however, you shift the burden to a team of dedicated HR experts. Your PEO will provide quality workers’ compensation claims administration, which includes fraud prevention.
While most employees are trustworthy, some have been known to fake an injury to get some time off and collect benefits. With comprehensive investigations by experienced workers’ comp experts, your PEO will ensure every claim made is valid.
Working with a PEO for workers’ compensation management also means that claims won’t sit around waiting for you or your HR team to get to. A PEO will be committed to bringing claims to a rapid, efficient conclusion.
They’ll also conduct drug tests to find out if the employee was under the influence at the time of the accident. This can save you money if the test comes back positive. With a PEO, you can make sure worker’s comp claims are handled fairly and in compliance with relevant laws.
Return to Work Program
Having your employees get back to work sooner will lower the amount of benefits they receive and reduce your overall workers’ comp burden. Even if your workers come back to work in reduced or altered capacity, your budget can have more breathing room when they’re no longer receiving worker’s compensation benefits.
Your PEO partner will help you create and implement successful return-to-work programs for injured workers. This will involves coordinating with medical providers, developing light-duty positions, and training your employee to adapt to the new position.
Protect Your Employees and Your Business with Vested HR and PEO Worker’s Comp.
At Vested HR, we specialize in managing all aspects of workers’ compensation. We’ll take time to understand your business so that we can give you access to the worker’s comp coverage you need and provide guidance on compliance.
Our PEO workers comp experts will help you find the right policy, take care of all the paperwork, handle audits and claims, ensure compliance with necessary regulations, and take on everything in between. We allow you to offload this detailed and complex task so you can focus on your business and have the peace of mind you need. Contact us today to get started with a free consultation.