What Is a PEO in Insurance?

What is a PEO in Insurance?

The PEO, or Professional Employer Organization, is a company that provides HR services to small businesses. Part of the PEO’s job is to select health insurance options for their client’s employees. PEOs work with many health insurance carriers to find the best plans for their clients. This way, employees of small businesses who partner with PEOs have access to high-quality health insurance plans.

Regarding health insurance, PEOs are an essential resource for small businesses. By working with PEOs, small companies can provide their employees with good quality health insurance without navigating the complex and often confusing world of health insurance on their own.

PEOs can offer their clients other benefits, such as workers’ compensation, disability insurance, and retirement plans. And because PEOs spread the risk across a pool of clients, they are often able to negotiate lower rates for these services.

A PEO provides integrated HR Services, including:

  • (1) Payroll 
  • (2) Tax Filing 
  • (3) Benefits 
  • (4) Worker’s Compensation 
  • (5) Workplace Safety 
  • (6) HR Guidance & Administration to help small & mid-sized businesses manage specific employer responsibilities as well as risks

How PEO Insurance Works

1. Meet with Our Experts – Our team will help select the PEO solution that fits your company’s needs from more than a dozen top-rated PEOs nationwide.

2. Vendor Match Reports – Find a matched PEO vendor for your business. Our team markets to the top (5-7) reputable PEO providers.

3. Financial Analysis – Compare all line items for each PEO. Drill down to the penny for each employee, or keep it simple with executive roll-ups. This includes aggressive price negotiations backed by real-time competitive data.

4. Finalist Presentations – Our experts introduce you to reps from 1-3 PEOs to review deliverables, tech demos, and timelines. Meanwhile, we’ll verify doctor networks, pull references, and run any last-minute analysis for your selection.

5. Implementation & Support – We add value to the PEO-Customer relationship by providing free, ongoing support with industry expertise and best practices.

Why would someone want a PEO?

  • To explore alternative healthcare and benefits strategies.
  • Help Stabilize Costs
  • Administrative Relief o Ease the administrative workload so a client can focus on the big picture.
  • Compliance Protection o Comply with changes in tax law, health care, workplace safety, unemployment insurance, and more regulations.
  • To have everything streamlined and in one basket with one company

The Pros of PEO Health Insurance

  • PEOs can save businesses money on health insurance and other benefits.
  • PEOs are experts in HR, so they can help businesses comply with complex employment laws.
  • PEOs take on the burden of HR for their clients, freeing up business owners to focus on running their companies.

The Cons of PEO Health Insurance

  • PEO pricing can be confusing because there are many different fees involved.
  • PEOs are not always licensed to do business in every state.
  • It can be challenging to find a reputable and reliable PEO.

When it comes to finding a reputable and reliable PEO, there are a few things you’ll want to keep in mind. First, be sure to check out online reviews from other businesses. This will give you a good sense of the company’s reputation. Next, make sure to ask for referrals from other business owners who have used a PEO before. This can be a great way to get first-hand information about the quality of the service. Finally, be sure to get everything in writing before you sign up for services. This will help you avoid any surprises down the road. By following these tips, you can be sure that you’ll find a PEO that meets your needs and provides excellent service.

Overall, working with a PEO can be a great way for small businesses to provide their employees with good quality health insurance. PEOs are also experts in HR, so they can help companies to comply with complex employment laws. However, it is essential to do your research before choosing a PEO, as many different fees are involved, and not all PEOs are licensed to do business in every state. Like any insurance, there is an underwriting process, and some “blue-collared” companies will be denied due to their inherent risk. The less risky a company is, the more likely they will be approved for PEO

How to choose my PEO Health Insurance?

If you’re thinking of working with a PEO, it’s important to research and find an organization that is reputable and has a good track record. It would be best if you also ensured that the PEO you choose is licensed to do business in your state.

When you partner with a PEO, you entrust them with an essential role in your business. But if you find the right PEO, they can be a valuable ally in helping your business succeed.

PEOs take on the burden of HR for their clients, freeing up business owners to focus on running their companies. PEOs can also save businesses money by helping them get better rates on things like health insurance and workers’ compensation. And because PEOs are experts in HR, they can help companies to comply with complex employment laws.

Who is an ideal PEO client?

  • A company with 5+ employees
  • Real Estate & Property Management
  • Prospects currently in a PEO looking for a complimentary PEO Review
  • Technology Industry
  • Engineering/Architecture Firms
  • Medical/Dental Practices
  • Electrical Contractors
  • Law/Legal Offices
  • Accounting Practices
  • Non-Profit Organizations

How much does a PEO cost?

  1. When you work with a professional employer organization (PEO), you can outsource many of the complicated aspects of human resources and payroll. Part of what you’re paying for is peace of mind-but that doesn’t mean you shouldn’t understand the details of your bill. One important thing to know is how your PEO calculates its percentage of payroll. The percentage of payroll is the portion of your total payroll that goes to the PEO, plus local, state, and federal taxes, workers’ comp, and employer practice liability insurance (EPLI). There’s also an added administrative fee. This can make accounting confusing since the PEO’s administrative fee can vary by employee and change throughout the year. However, by knowing how your PEO calculates its fees, you can be confident that you’re getting fair and transparent pricing.
  2. Per-employee-per-month (PEPM): The PEPM fee is negotiated directly with the PEO when you sign up. This doesn’t include a separate setup fee, which can be thousands of dollars. It also doesn’t include hidden charges for additional features or even things like running an off-cycle payroll.

When would someone need a PEO?

  • (1) Experiencing Large Health Insurance Renewal Increases
  • (2) Worker’s Compensation Issues
  • (3) Wanting to Eliminate Future WC Audits
  • (4) Business Growth or Expansion
  • (5) Multi-Location/Multi-State
  • (6) Changes in Key Staff
  • (7) Compliance Challenges

Let’s say you’re a small business owner in California. You have 20 employees. Your health insurance just went up 30%. You’re trying to figure out why, and you’re also trying to understand how you’re going to pay for it. Suddenly, you realize that you need a PEO. A PEO can help you with large health insurance renewal increases by negotiating on your behalf with the insurance company. They can also help you with worker’s compensation issues by ensuring that your employees are classified correctly and that you’re paying the correct premiums. In addition, a PEO can help you eliminate future WC audits by keeping accurate records and complying with all relevant regulations. Finally, a PEO can help you with business growth or expansion by providing HR support and ensuring compliance with all applicable laws. If you’re a small business owner in California, a PEO can be an invaluable resource.

How do I get off a PEO?

Once you have those numbers in hand, you can begin breaking away from your PEO. This may involve some paperwork and negotiations, but ultimately it’s up to you to decide when and how to leave. Be sure to consult with an attorney or accountant to ensure that you take all the necessary steps.

If you’re ready to leave your PEO, there are a few things you need to do first. Most importantly, you’ll need to obtain your Federal Employer Identification Number (FEIN) and your State Tax ID number. These will allow you to file your payroll taxes independently.

What is a PEO in Insurance?

The PEO, or Professional Employer Organization, is a company that provides HR services to small businesses. Part of the PEO’s job is to select health insurance options for their clients’ employees. PEOs work with many different health insurance carriers in order to find the best plans for their clients. This way, employees of small businesses who partner with PEOs have access to high-quality health insurance plans.

When it comes to health insurance, PEOs are an important resource for small businesses. By working with PEOs, small businesses can provide their employees with good quality health insurance without having to navigate the complex and often confusing world of health insurance on their own.

PEOs are also able to offer their clients other benefits, such as workers’ compensation, disability insurance, and retirement plans. And because PEOs spread the risk across a pool of clients, they are often able to negotiate lower rates for these services.

A PEO provides integrated HR Services including:

  • (1) Payroll 
  • (2) Tax Filing 
  • (3) Benefits 
  • (4) Worker’s Compensation 
  • (5) Workplace Safety 
  • (6) HR Guidance & Administration to help small & mid-sized businesses manage certain employer responsibilities as well as risks

How PEO Insurance Works

1. Meet with Our Experts – Our team will help select the PEO solution that best fit your company’s needs from more than a dozen top-rated PEOs nationwide.

2. Vendor Match Reports – Find a matched PEO vendor for your business. Our team markets to the top (5-7) reputable PEO providers.

3. Financial Analysis – Compare all line items for each PEO. Drill down to the penny for each employee, or keep it simple with executive roll ups. This includes aggressive price negotiations backed by real-time competitive data.

4. Finalist Presentations – Our experts introduce you to reps from 1-3 PEOs to review deliverables, tech demos, and timelines. Meanwhile, we’ll verify doctor networks, pull references, and run any last minute analysis for your selection.

5. Implementation & Support – We add value in the PEO-Customer relationship by providing free, on-going support with industry expertise and best practices.

Why would someone want a PEO?

  • To explore alternative healthcare and benefit strategies
  • Help Stabilize Costs
  • Administrative Relief o Ease the administrative workload so client can focus on the big picture
  • Compliance Protection o Comply with changes in tax law, health care, workplace safety, unemployment insurance, and more regulations
  • To have everything streamlined and in 1 basket with 1 company

The Pros of PEO Health Insurance

  • PEOs can save businesses money on health insurance and other benefits.
  • PEOs are experts in HR, so they can help businesses comply with complex employment laws.
  • PEOs take on the burden of HR for their clients, freeing up business owners to focus on running their companies.

The Cons of PEO Health Insurance

  • PEO pricing can be confusing because there are many different fees involved.
  • PEOs are not always licensed to do business in every state.
  • It can be difficult to find a reputable and reliable PEO.

Overall, working with a PEO can be a great way for small businesses to provide their employees with good quality health insurance. PEOs are also experts in HR, so they can help businesses comply with complex employment laws. However, it is important to do your research before choosing a PEO, as there are many different fees involved and not all PEOs are licensed to do business in every state. Like any insurance, there is an underwriting process and some “blue-collared” companies will be denied due to their inherent risk. The less risky a company is, the more likely they will be approved for PEO

How to choose my PEO Health Insurance?

If you’re thinking of working with a PEO, it’s important to do your research and find an organization that is reputable and has a good track record. You should also make sure that the PEO you choose is licensed to do business in your state.

When you partner with a PEO, you’re entrusting them with an important role in your business. But if you find the right PEO, they can be a valuable ally in helping your business succeed.

PEOs take on the burden of HR for their clients, freeing up business owners to focus on running their companies. PEOs can also save businesses money by helping them get better rates on things like health insurance and workers’ compensation. And because PEOs are experts in HR, they can help businesses comply with complex employment laws.

Who is an ideal PEO client?

  • A company with 5+ employees
  • Real Estate & Property Management
  • Prospects currently in a PEO looking for a complimentary PEO Review
  • Technology Industry
  • Engineering/Architecture Firms
  • Medical/Dental Practices
  • Electrical Contractors
  • Law/Legal Offices
  • Accounting Practices
  • Non-Profit Organizations

How much does a PEO cost?

  1. Percentage of payroll: This is a percentage of your total payroll for each pay period, plus local, state, and federal taxes, workers’ comp, and employer practice liability insurance (EPLI). Plus, there’s also an added administrative fee. This can make accounting confusing since the PEO’s administrative fee can vary by employee and changes throughout the year.
  2. Per-employee-per-month (PEPM): The PEPM fee is negotiated directly with the PEO when you sign up. This doesn’t include a separate setup fee, which can be thousands of dollars. It also doesn’t include hidden charges for additional features or even things like running an off-cycle payroll.

When would someone need a PEO?

  • (1) Experiencing Large Health Insurance Renewal Increases
  • (2) Worker’s Compensation Issues
  • (3) Wanting to Eliminate Future WC Audits
  • (4) Business Growth or Expansion
  • (5) Multi-Location/Multi-State
  • (6) Changes in Key Staff
  • (7) Compliance Challenges

How do I get off a PEO?

Once you have those numbers in hand, you can begin the process of breaking away from your PEO. This may involve some paperwork and negotiations, but ultimately it’s up to you to decide when and how to leave. Be sure to consult with an attorney or accountant to ensure that you’re taking all the necessary steps.

If you’re ready to leave your PEO, there are a few things you need to do first. Most importantly, you’ll need to obtain your Federal Employer Identification Number (FEIN) and your State Tax ID number. These will allow you to file your payroll taxes independently.

Why Hotaling Insurance Services for your PEO?

Looking for a PEO can be a daunting task. There are hundreds of options out there, and it can be hard to know where to start. However, Hotaling Insurance Services is a great option for anyone in need of PEO services. Here’s why:

First and foremost, Hotaling Insurance Services is a reputable and experienced provider of PEO services. They’ve been in business for over 20 years, and they have a team of highly skilled and knowledgeable professionals. Additionally, they are constantly innovating and expanding their services to meet the needs of their clients.

Second, Hotaling Insurance Services is dedicated to providing outstanding customer service. They are always available to answer any questions or concerns you may have, and they will work with you to find the best possible solution for your needs.

Finally, Hotaling Insurance Services is committed to providing affordable, quality PEO services. They offer a variety of pricing options that are designed to fit within your budget, and they offer discounts for bulk purchases.

If you’re looking for a PEO that can provide you with top-notch service and quality at an affordable price, then look no further than Hotaling Insurance Services. Contact them today to learn more about what they can do for you.