Surety HR is a professional employment organization that is here to advise employers on what they should be looking for and helping them with the idea of a pricing structure if they decide to venture into a self-insured PEO relationship.
All workers' comp premiums are based on manual codes and the payroll assigned to that code. Most employers have more than one code, so it is essential to make sure you have the right codes for the jobs that you have.
SI PEO premiums should be 20%-50% less than the BWC premiums.
Another important component to be aware of is that with these premiums is that ownership and c-level executives have capped salaries.
Payroll and fees should be based on a per-employee pay rate. Make sure you avoid the percentage of the payroll as that can fluctuate, so you do not want to pay extra if you do not have to.
Along with these rates, you should get safety services for your facility, including I-9 review and employee handbook creation or revision. The claims cost should be included in these fees.
Start-up fees. You should not have to pay a start-up fee as they usually just got to the sales representative as a form of commission.
Again, avoid pricing structures based on the percentage of payroll. These types of structures do not reflect the true cost of SI PEO services and will always cost you more than you need to pay.
If you are interested in learning more about the self-insured PEO pricing structure and what you should look for, contact us today at Surety HR.