help small businesses in a multitude of ways and one of those is Employee Benefits.
Aside from salary and wages, the second biggest non-cost of goods expense for small business is Employee Benefits. Offering quality, affordable employee benefits is vital to attracting and retaining the best talent for your team.
Since the Affordable Care Act (Obamacare) came around, not offering your employees benefits is no longer an option. Most companies do offer benefits. But, in the open market, there are very few options that aren’t either offering subpar coverage or are extremely expensive. The open market also carries heavy annual renewal costs that range from 10-20%.
Small businesses find it difficult to find solid benefits for their team, because most carriers don’t want to deal with SMBs. But, there is a way that small business can find and offer big company benefits that are still cost effective- PEOs.
PEO's help small businesses get control of their Employee Benefits in a few ways. Here’s how:
- The PEO gives their client’s access to Fortune 500 employee benefit plans. Most PEOs offer plans from National carriers and plans that are widely accepted, with several different plans to choose from.
- The rates and premiums are affordable and the benefit plans are much richer than what’s found by small businesses in the open market.
- PEO's manage their benefit plans to keep their rates down. Because PEO's are buying benefits for thousands of employees, the annual renewal fees are typically much lower than those you’d find on the open market.
- The PEO handles all of the enrollment, administration and COBRA associated with offering employee benefits.
- HSA, FSA, and HRA accounts are managed and administered by the PEO or by a Third Party Administrator who is managed by the PEO.
- PEOs offer a single point of contact for all employee benefit plan issues and questions for your employees. This gives you and your staff faster access and help when you need it.
The alternative is to allow benefit issues to weigh heavy on a small business and drain valuable resources.
In addition, a PEO can help you compete for the best talent. Being able to offer your employees quality, affordable benefits can distinguish between you being an employer of choice versus just an employer.
If you haven’t explored the many benefits of joining a PEO, you should. Thousands of companies have alleviated the burdens that go along with running a small business, by working with a Professional Employer Organization.
If you’d like to see exactly how a PEO can benefit your small business, contact us and we’ll get to work for you.