When it comes to being able to offer your employees health insurance, your options can feel vast and limited at the same time. Between federal and state requirements and the cost of health insurance, this process is overwhelming for small business owners.
PEOs have access to custom health insurance policies. That can be a boon to small employers wanting to provide health coverage benefits to employers at a price the company can afford. Some insurance companies have teams and programs specifically focused on working with PEOs and assisting them in providing solutions for the businesses they represent.
Co-Employment Creates Leverage for Health Insurance
When you enter into a partnership with a PEO, you sign a “co-employment” agreement. This simply means the PEO can act as the employer of record for your employees when it comes to certain financial and legal matters laid out in your client services agreement.
The PEO gets a large employee pool to bargain for better employee benefits. The business owner(s) still fully employ their workforce, maintain control over the business, and make all hiring and firing decisions.
Your business saves time and money while having the ability to offer a prime employee benefits package at a price that doesn’t bust your budget. And a PEO can then help you administer your benefits program and ensure you’re in compliance with all relevant laws and regulations.
PEOs Can Navigate the Affordable Care Act (ACA)
The ACA changed everything when it comes to employee benefits. Being able to offer the employee benefits you want and also remain in compliance with the ACA and other laws and requirements is exactly where your PEO partner excels.
Your PEO will often be able to present you with several health insurance options to choose from. Additionally, they may also be able to allow your business to affordably offer other benefits such as vision, dental, life, and disability insurance that can help you attract and retain top talent.
How to Get the Most Out of Working with Your PEO Partner
To ensure you are working with the most well-rounded, proficient partner, NetPEO can help you connect with an IRS Certified PEO to help ease your mind about any co-employment arrangement.
But, in addition to opening the door to a myriad of insurance and benefits options for your employees, PEOs offer a number of other, very valuable services that can save you time and money as a business owner.
- Payroll management including taxes, withholding, and direct deposit
- Claims resolution including unemployment, workers compensation, discrimination, and wrongful termination
- Complete human resources support
- Recruiting
- Ensuring compliance with federal, state, local, and industry-specific regulations
Small Business Health Insurance and More
On average, health insurance premiums increase about 4% every year. That’s a 20% increase every five years. At the same time, employees expect their employers to pick up an increasingly larger share of the cost of total health insurance premiums.
Working with a PEO partner can not only allow you to provide more and better insurance options but can allow you to get additional benefits at a price your business can afford. When you add in the other extensive capabilities of a PEO, the information points to working with a PEO as a net benefit to your business and its growth.
Discuss the Pros of PEOs for Small Business Health Insurance
Call NetPEO at (678) 841-7146 or fill out the form. We take the time to learn about your business and your specific needs. From providing affordable health insurance options to removing human resources tasks from your to-do list, we help connect you with the PEO partner that saves you time, money, and supports your business growth goals.
