How does utilizing a PEO impact Workers Compensation insurance?
A. PEOs purchase a bulk policy and therefore can provide substantial savings up front and control your costs over the long term through effective claims management. Cash flow is improved as the deposit premium for workers compensation is no longer required. This coverage is automatically calculated each pay period based on the amount of gross payroll. In other words, its a pay as you go program. As a result, payroll audits are no longer necessary.
