7 Tip's on How to Reduce Employment Related Cost

Tip #1 - Cash Flow:
Workers' Compensation Management is a daunting task for the business owner. Besides the considerable expense, there are the administrative headaches involved in keeping your workplace in compliance with constantly changing laws. Business owners may recognize immediate cash savings on Workers' Compensation due to the group buying power of the PEO. Many business owners have saved up to 50% on their workers' compensation costs. Not only are reduced premiums great savings, but the business owner may also realize increased cash flow from the advantage of No Down Payments. Another significant saving is that clients are charged on actual payroll, eliminating the need for time-consuming year-end audits and "unexpected" costs.

Tip #2 - Loss Control:
OSHA Compliance
Professional Employer Organization Services provides assistance with Occupational Safety and Health Act (OSHA) and Safety Administration. In addition, with no cost to its clients a customized, industry specific Safety Manual.

Claims Administration
Professional Employer Organizations join forces with you and your company, which creates a "co-employer" relationship. The PEO enables you to take full advantage of there vast experience in managing Workers' Compensation claims. The PEO handles each and every claim in a timely and expedient manner, saving you time and hassles.

Professional Employer Organization saves its clients dollars associated with the post accident and reasonable suspicion drug tests.

Tip #3 - Volume Buying Power:
Generally, as the number of employees covered under an Employee Benefit Plan increase so should the costs be reduced. Employees of the PEO company are given the opportunity to take advantage of these reduced rates.

Premium volume discounts are available to employers with very large workers' compensation exposures. These discounts are extended to the clients of the Professional Employer Organization.

Tip #4 - Pre-Tax Savings:
IRS Code Section 125 (Cafeteria Plan) allows employees to pay for the majority of their payroll deduction benefits on a pre-tax basis, which can result in as much as a 33% savings on benefits.

In turn, the employer/client is not required to pay payroll taxes on those amounts deducted by employees, greatly reducing their overall employee costs.

Tip #5 - Electronic Payroll :

Payroll and Tax Administration
Tired of wasting your valuable time handling the paperwork hassle of managing your payroll? Let a PEO be your payroll department. They'll handle all aspects of payroll and employment taxes for you, leaving you with more time to grow your business.

Complete Payroll Processing
Included in payroll services will be year-end W-2's, and no hidden fees for customized reports, wage and history reports. You will no longer need to maintain a separate payroll account or face the tedious reconciliation of payroll checks.

Federal, State, and Local Payroll Tax Reporting
All reporting to federal, state, and local agencies will be the responsibility of the PEO company. You will no longer need to be concerned with payroll tax deposits or reports. Included in the services are all filings with all applicable agencies and complete maintenance of all payment records.

Tip #6 - Human Resources Administration:
Companies are now, more than ever, recognizing that a highly skilled and motivated workforce is pivotal to their success. In bottom-line terms, employees represent the intellectual capital that can make or break a company's ability to remain competitive.

The human resources function encompasses assessing staffing needs, effective training initiatives, interpreting federal and state codes, and implementing policies and benefits that safeguard workers while protecting company interests. The stakes are high. The legal and economic consequences of a major HR misstep can be enormous.

For many, human resources management is an intimidating prospect. Today's businesses need a practical yet comprehensive resource.

The PEO can effect time and cost savings in such areas as:

• Hiring and Firing Compliance Issues
• Family and Medical Leave Act (FMLA) Administration
• State Unemployment Claims Control
• Provide a Client Reference Guide, which contains key information including forms to administer your organization's human resource requirements.
• Equal Employment Opportunity Commission (EEOC) Compliance
• Americans with Disability Act (ADA) Compliance
• Fair Labor Standards Act (FLSA) Compliance
• Wage and Hour Reports
• Employee Handbooks

Tip #7 - Employment Practices Liability Insurance:
PEO's generally maintain an Employment Practices Liability Policy. This policy covers employment related Wrongful Termination, Discrimination, Sexual Harassment, and Workplace Torts liability. This coverage has become as important as general liability coverage, yet most small-to-medium-sized companies do not currently carry it due to the high cost.