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PEO Mythsvs.RealityBy Clay Kelley1
Clay Kelley BackgroundClay Kelley has been in the HR Outsourcing and PEO businesssince 1985.He has participated in seven mergers and acquisitions and assistedin raising over 20,000,000 in capital and has trained over 2000sales professionals.Clay Kelley holds the distinguished Professional in HumanResources (PHR) designation from the Human ResourcesCertification Institute.2He is the author of three books; Success in Selling PEO, JUMP Startto Success in Selling PEO, and Managing for Success in SellingHRO. He is the most published author of sales related articles in theindustry.
Who We AreInsured Solutions is a national MGA with over 300million dollars in revenue specializing in alternativemarkets. We utilize independent agents to provide theirclients one resource for: Hard to place workers’ compensation coverageAlternative workers’ compensation marketsRisk management servicesOptional payroll administrationSales and support offices in Georgia, California, NorthCarolina, Florida, Tennessee3
What Do We Do for our Agents? We are here to increase your commissions! Access to alternative markets for hard to place risk On-line broker portal for quick quoting & tracking In-house underwriters In-house agent services representatives & CSR’s Aggressive risk management programs On-site loss control Post Claims Management4
What is a Professional Employer Organization (PEO)?A professional employer organization is a serviceprovider that contracts to share or allocate certainresponsibilities of an employer in the areas Human resources Workers’ Compensation Risk management5 Payroll administration
How Do Most Employers Deal with HR?Multiple duties inaddition to HRPayroll Consultant Attorney or CPA ?6 Required by Law Carrier Down Payment Annual Audit Audit llResourcesHiringSafetyHiringSafety Majority outsource Time & Attendance VendorHuman Resources
National PEO’s that are publicly tradedADPAdministaff/ Insperity7Tri-NetPaychexBBSI
At Insured Solutions, we believe thereis a better way Reduce Cost We provide HRexpertise8SafetyHRPayrollWorkersComp Execution of Payroll Direct deposits Tax payments & Taxreporting Negotiate coverage withcarrier No down payment No audit/premium
Why Outsource HR?100% LiabilityDirection & iceAgreementC.S.A.9InsuredSolutions Human Resources Workers’ Compensation Safety Benefits Payroll
Why Outsource HR?PPTLC Maximize Employee ProductivityReduce Time spent in transactional HRReduce Employment LiabilityUltimately lower labor CostIncrease Profitability10Human Resources Human resources consultationsAssist with workplace conflictsPre-employment screeningEmployee handbooksPosition descriptionsManagement & employee trainingAssist with SUTA claims, hearings &appeals
Why Outsource HR?Payroll & Tax Compliance Online Human Resources ManagementSystem (HRMS)Online process, direct deposits & checksPayroll tax liability & compliance transfer Tax deposits Withholding, FICA, FUTA, SUTA,other Tax form filing 940, 941, W-2s, W-3 & SUTA, otherReconcile payroll & tax transactionsRisk Management 11Procure coverageEliminate the down paymentEliminate the payroll-premium auditEliminate the audit premiumSmaller premium paymentsWork site safety inspectionsRisk specific safety plans, training &materials Claims management Process claims Post accident drug testing Claim investigations Coordinate return to work programs(RTW)OSHA compliance assistance
PEO Myth # 1Clients will lose theirexperience MOD and claimdata by joining a PEO.12
PEO Reality PEO’s report data to the NCCI, WCRIB,etc. by client co. for MOD promulgation CA Rule 4 requires PEO’s to issueseparate policies and report to the WCRIB Clients receive their own loss data to usefor marketing their account13
PEO Myth #2Clients lose control over their employees by joining a PEO14
PEO Reality By contract, clients maintains direction and control overemployees Clients hire, fire, train employees15
PEO Myth #3PEO clients & agents will haveto shop each year for theirannual insurance renewals.16
PEO Reality Most PEO’s offer an auto-renewalprocess so renewals are a non-event Depending on the state (excluding CA &NY), most PEO’s give flat renewals onworkers’ comp and competitive renewalson medical insurance plans An annual pricing review isrecommended if the client has dramaticchange in payroll or losses/MOD17
When a PEO is a fit for a client Client is using PEO now and wants toimprove services and pricing Needs assistance in risk management Needs to improve hiring & HR practices Xmod is over 1.50 and standard marketoptions are limited18
PEO Services that MUST BE includedPAYROLLPayroll Administrationusing the PEO FEIN #Workers’CompInsuranceWorkers’ CompensationInsurance** Can be carved out if client is using PEO medical plan19RiskManagementRisk Management
When a PEO is NOT a fit Client refuses to outsource payroll Client has poor cash flow to meet their payroll Vendors or government funding will not allow a PEO Client will not cooperate with PEO risk managers20
Thank you for your time!We will email you the date ®istration to the next webinarseries that will occur in June!21
PEO Reality Most PEO’s offer an auto-renewal process so renewals are a non-event Depending on the state (excluding CA & NY), most PEO’s give flat renewals on workers’ comp and competitive renewals on medical insurance plans An annual pricing review is recommended if t
