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peo workers compensation

peo workers compensation

Worker compensation claims all over the world are increasing day-by-day. To manage workers compensation issues is no mean feat for a businessman. The job is extremely challenging and time-consuming. However, the responsibility of handling the task can be given away to able shoulders i.e. a PEO (Professional Employer Organization). A business owner has to enter to a co-employment relationship with a PEO for the same. Now, the big question is apart from lessening the burden of dealing with such crucial task and as a result, getting more time to focus on core business operations, what are the other reasons that prompt a business owner to use PEO for workers compensation issues.


Here, are some of the possible reasons mentioned below in brief.

  • No need of a compulsory annual audit. Forget the days of painful annual audit as with a professional employer organization, there is no need of any such audit. This is because a PEO will process the payroll on a weekly basis.
  • More quicker return to work.  A PEO offers back to work (RTW) programs and ensures a quicker return of the employees to work. Such a program enables both injured and non-injured employees of an organization to recover faster, and at the same time help the organization to bear less cost of worker’s compensation.
  • Employee Retention. PEO have an easy access to a large number of Fortune 500 employee benefits which not present in the insurance open market. This means offering employees more and better benefits and keeping them happy. This directly translates to more employee retention which is very important for every business to achieve success.

Apart from the above reasons, a PEO’s pay as you go program and employee safety program also helps a lot to build a trust factor with employees within an organization. Moreover, a PEO has a HR infrastructure too that prove like a boon for particularly start-ups or small businesses with limited resources to run their business smoothly. With so many genuine reasons, it would be no surprise if many have already used a PEO for workers compensation issues.

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