Your HR needs will vary as your company grows. If adding extra staff to handle the increased burden in your HR department isn’t an option, a PEO healthcare may be a solution. Professional Employer Organization enables you to outsource your HR function and receive assistance with all aspects of your HR requirements. This applies to your health-care plan as well.
We’ll look at the benefits and drawbacks of PEO and what they mean for your company’s healthcare plan.
What Exactly Is A PEO?
PEOs offer a variety of services to help you manage and maintain your HR needs, such as:
• Payroll
• Benefits
• Workers’ compensation
• Compliance
• General HR management
When you utilise a PEO, you may focus on your operations while the PEO handles your HR needs. This meets the needs of employees while also ensuring compliance.
What Is A PEO And How Does It Work?
A co-employment model is created when you work with a healthcare PEO. This indicates that the PEO is the legal employer. As a result, they are now liable for all responsibilities related to your company’s HR department. Your payroll is processed using the PEO’s tax ID numbers, which means they are responsible for the risks. You also lose control of this function as a result of this. This becomes clearer when you consider that you will be expected to follow their policies and procedures as part of this relationship.
These may differ from what your staff are accustomed to, and if you have personnel concerns, the PEO will only assist you if you follow their rules. You’re now only concerned with following federal, state, and municipal regulations. Many businesses desire to discover a solution that allows them to keep complete control over their HR rules and procedures. You’re also in charge of your company’s HR management strategy and culture.
What Are the Advantages of a PEO?
So, what are the advantages of hiring a PEO for your company and healthcare plan?
1. Purchasing power: This is where the true impact on your healthcare plan can be noticed. Because peo employment is larger, they have more purchasing power and may offer your employees significantly more competitive benefits and health insurance options. They can negotiate the best rates and offer an excellent healthcare plan to assist you attract top individuals in your field.
2. Assurance of liability: The PEO has a strong team of credentialed HR specialists and attorneys since they take on risks and liability. You have access to these professionals in the event that problems develop, and they can help you manage the dangers that come with working.
The most significant impact will be that you will be able to provide a considerably more appealing healthcare plan to your employees.
What Are the Drawbacks of PEO?
On the other hand, you must balance the disadvantages of a PEO:
• Cost: peo healthcare charge a % of payroll, which can add up quickly and make it difficult to know exactly how much you’re paying. Because PEOs like to lump everything into one billing, it’s difficult to tell what constitutes their administrative costs and what funds were spent on items like payroll and taxes, workers’ compensation, and EPLI. There are additional set-up fees to consider, as well as a per-employee payment.
For the best PEO in healthcare services, contact Nexus HR today!
Nexus HR 