Why should I use a PEO for my trucking company?
Professional Employer Organizations or PEO’s are a way to outsource all the payroll, HR, workers comp and sometimes health insurance and 401k to an outside organization. There are a number of PEO’s that work with trucking companies with TLC being maybe the biggest. ADP and Paychex also offer PEO service packages. But all of this talk and jargon can get confusing, so when is a PEO right for you? We will examine a few circumstances where it may be a good fit. Superior Trucking Payroll service is not a PEO and does not offer or endorse any particular PEO but our mission is to help trucking families and that may mean not using our services.
If your workers compensation claims experience rating is really bad.
Some trucking companies, even safe ones, can have a bad run of accidents which result in worker compensation insurance claims. Those claims will raise your rates over time for workers compensation insurance. If your workers compensation rates have skyrocketed due to claims, this may be a way to mitigate that by being in a PEO for a couple years. During those PEO years, if you have better claims experience, you can go back into owning your own policies again.
You want to be 100% hands off for your safety and HR functions.
PEO’s can provide wellness programs and access to ancillary benefits with more purchasing power than you may have on your own though it is still worth checking out the rates with an agent for yourself. If you have no HR knowledge whatsoever, a PEO can help you make sure you avoid some potholes in HR. Ultimately, the risk is still yours if there is an HR issue but this will help you miss some of them. Also, the safety functions I refer to are not DOT related. That’s another service.
You want everything in one place.
Some trucking companies prefer to have all the employment services with one vendor. The idea is that it is “one stop shopping”. There is a valid counter argument to this that we will present in another article. But, if all in one is your most important issue, a PEO helps with that.
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