PEO Facts vs PEO Myths
There are a lot of misconceptions surrounding PEOs and how they work. Let's clear some of those up.
Myth: To use a PEO, the client must give up control of their company.
Fact: While it is necessary for us to assist with payroll, the client is not giving up control of their company. The employer still hires, fires, and manages day-to-day operations for the company, and can even cut checks in-house or use direct deposit if they wish. Because Insured Solutions helps to manage payroll, employee liability falls under our PEO's federal tax ID number. This means that, when your client faces liability, that liability reflects upon the PEO, not the client, as far as the government is concerned.
Myth: PEOs don't give contingencies, so agents don't make any money from PEOs.
Fact: While it's true that we don't give contingencies, agents who work with us do earn 8-15% commission on a PEO sale. In addition, you won't have to service the account year-to-year; we do that for you.
Myth:PEOs are trying to steal business from insurance agents.
Fact: The agents we work with are a vital part of our relationship with the employer. We can't manage the relationship without you. Not only that but, because the account remains yours, you benefit from the company's risk reduction when they follow our risk management guidelines. A year or two from now, you can shop the client in the traditional worker's compensation market and get better rates because they carry less risk.
Our PEO Definition
A professional employer organization (PEO), like Insured Solutions provides a plethora of services including human resources administration, payroll processing, employee benefits, risk management, and workers' compensation to businesses in high-risk industries.
To make the best use of our PEO service, we're looking for clients who:
If you have a client like that, Insured Solutions is here to help. Together, we can lower your client's risk and put you in the position to provide a solution where they thought there was none. As well, you will earn additional commission.