Reputation: 656
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Total posts: 19
Hi Susan...YES we can write most risks in all states in our non-rated to
"A"-rated Professional Employer Organization (PEO) and, in some
cases, Contract Labor Service (CLS)
programs.
Basically
PEO/CLS programs entail 2 main things….1) the PEO/CLS must be the statutory employer
of record for all covered employees, and 2) the PEO/CLS must process and issue
payroll drawn off the PEO/CLS bank accts.
……here
is an email that covers much of the basic info. you need to know about our
Professional Employer Organization (PEO) & Contract Labor Service
(CLS) programs….. Please read all
below and if this risk or you have a risk that you feel is a fit,
answer/provide all info. requested below.
Thanks!
NES does
best costwise for risks with high xmods, high cost class codes, in state pools,
with workers' compensation (WC) premiums of 50k or more, paying way more than
they should be, and generally considered highly WC distressed…..we can write
most risks including Staffing in our PEO programs….and Staffing also thru our
CLS programs….all depending on the overall risk picture…..As you probably know
by now, WC programs for staffing are almost nonexistent at this time with risks
going to or in state pools… however, again, we can write Staffing in our
PEO/CLS programs…. NES writes/places the most Staffing in PEO/CLS programs of
any brokerage in the USA.
Under a
PEO arrangement, a co-employer (primarily for benefits purposes) relationship
is established between the risk and the PEO, with the PEO becoming the sole
employer of record for IRS purposes. The PEO has a master "PEO"
designated WC policy. The workforce is contracted back to the risk to operate
and manage as usual. Under a CLS arrangement, primarily for Staffing, a
sole-employer relationship between the risks employees and the CLS is
established. The CLS has a master
"Staffing" designated WC policy. No functional control is lost of the
risk's business or labor force in either case, and in many cases, both the
employer and employees receive more and less costly benefits, services, and WC
coverage. The main purposes and goals of these relationships is to provide the
risk with more suitable and economic WC and administrative functions on an
outsource basis, including all management and navigation of the Affordable Care
Act's (Obamacare) regulations and implementation. In both the PEO and CLS
structures, all WC covered employee payroll must be processed by (in most
cases) and flow thru the PEO/CLS, with payroll checks drawn on the PEO/CLS bank
accts.
Under a
CLS arrangement for other than Staffing, available in some circumstances, a
sole-employer relationship between the Risks employees and the CLS is
established, with the CLS becoming the employer of record for the Risks
employees under a Staffing type agreement and WC policy. No functional control is lost of the risks'
business or labor force, and in fact, both the employer and employees receive
more and less costly benefits, services, and WC coverage. Payroll is reported to the CLS by the Risk,
and payroll checks (or direct deposit) are processed and are drawn on the CLS's
bank accts and taxes are paid under the CLS's tax #s. The employees are supervised/managed by the
Risk as usual. The main purposes and
goals of this relationship is to provide the Risk with more suitable and
economic WC and administrative functions on an outsource basis, including all
management and handling of the Affordable Care Act (Obamacare) regulations and
implementation.
Before
we quote either PEO or CLS, it must be cleared directly with risk, either by
you or us jointly, that such an arrangement will work for them….so not to waste
your/our time if the above basic structures will not work for them.
Submission
info needed:
• Detailed ACORD (must have # of
ees/code)
• 3-5 yrs losses valued no more than 45
from curr date
• last 4 quarters of State unemployment
rtns (for staffing risks only)
• Curr/renewal policy dec/rating pages
• State pool quote (preferred)
• Xmod sheet
Questions
on each risk:
1. Why are they shopping their WC? If being non-renewed, why?
2. Is "A" rated WC carrier
REQUIRED by risk?
3. Do they/you have any viable WC options at
this point. If so what are they?
4. Will they for sure goto a master policy
PEO/CLS program per above if the cost/structure makes sense?
5. Have you or the risk obtained a state
pool quote yet? if so please send, if
not please obtain and send or explain why you/they have not done so.
6. Do you control this risk? if not, how did you get this opportunity?
7. Will risk accept a deductible WC program,
if so what level?
8. What is our target annual cost we need to
hit to write deal?
We look
forward to working with you. Thank you!
Best
Regards,
Ken
Heideger
Nationwide
Employer Services LLC
Offices
in FL and CA
954-554-3456