Let’s dig into Florida PEO Trends in 2018! Professional employer organization (PEO) companies in Florida comprise about 14 percent of the industry, with close to 50 PEOs across the state. Florida, along with Texas, has the most PEOs in the nation. PEOs help their clients manage their businesses more effectively, avoid compliance pitfalls to create key benefits for the business. This also frees up time for business owners, allowing them to focus on things that are core to the business, such as operations and strategy.
A recent PEO study in Florida Trend Magazine shows:
- There are approximately 1,000 PEOs nationwide.
- The industry’s gross revenue is between $136 billion and $156 billion.
- PEOs have grown 15 to 25 percent in recent years.
PEOs Relieve Administrative Burdens
Health benefits, taxes, and regulation, which are some of the top issues PEOs help their clients address, are consistently reported as the top concerns of business owners. When business owners partner with a PEO, the PEO becomes a co-employer and is responsible for much of the administrative burden inherent in the employer role. Originally, PEOs were known as employee leasing companies. Today, they handle much more, including:
- Payroll services
- Payroll tax payments
- Regulatory paperwork
- Human resources services
- Workers’ compensation insurance
- Unemployment insurance
- Employee benefit packages, including 401(k) plans
PEOs also offer a broad array of guidance on topics such as workplace diversity, employee retention, and federal, state, and local employment laws.
PEOs Save Clients Money and Time
Even basic HR functions can be time-consuming, distracting, and error-prone. PEOs like Integrity Employee Leasing can help business owners by taking on these responsibilities and streamlining the process. We save clients time by:
- Processing employee paperwork
- Creating policies
- Explaining employment laws to avoid potentially time-consuming litigation
- Processing complex payrolls
- Handling wage garnishments, tax withholding, and filing
- Offering technology tools
- Allowing clients to bypass annual workers’ compensation insurance audits
- Managing workers’ compensation insurance claims
- Providing support to injured workers
- Processing OSHA reports
- Offering a variety of employee benefit packages
- Administering employee benefits
Employers often find that partnering with a PEO costs less than doing things alone or hiring the staff needed to cover all the bases. In effect, not only can a company like Integrity help you save time, but also money. We do it by:
- Providing guidance on employment practices, compliance, and procedures to avoid costly lawsuits
- Processing payroll accurately and on time to avoid fees associated with payroll mistakes
- Filing state and federal taxes to eliminate the risk of late fees or penalties
- Offering low rates and flexible payment plans without big down payments on workers’ compensation insurance
- Managing workers’ compensation claim costs by reviewing bills to maximize savings opportunities
- Mitigating safety risk by helping to identify hazards on worksites and creating safety programs
PEOs Offer Cost-Effective Benefits Plans
Because PEOs spread costs across a larger pool of employees, businesses can more cost effectively offer employee benefits such as 401(k) plans and health, dental, life, and dependent care. Employers can offer retirement savings with no out-of-pocket costs or elect to match a portion of employee contributions.
2018 Nationwide PEO Trends:
- More large employers are considering PEOs.
- PEO salaries and hiring are up.
- The average PEO-client relationship is eight to 12 years.
- The PEO industry is expected to experience consistent growth over the next five years.
Are PEO services the answer you’ve been looking for the help your business? Find out by exploring our site and Integrity’s comprehensive suite of services, and contact us today for a free cost analysis! We’ll help you understand what you will spend – or save – through a partnership with Integrity even if you don’t work with a PEO. Contact a member of our team today to get started!