If you’re a business owner, payroll can be complicated and time-consuming. There’s more to the process than simply paying your employees. Payroll also involves tracking time worked, calculating wages owed, filing taxes, managing employee benefits, and much more.
As a business owner, administrative tasks can be daunting, and it may feel like your focus and attention would be better utilized elsewhere. For this reason, many businesses are choosing to outsource these tasks to companies that specialize in them. Keep reading to learn more about the benefits of outsourcing your payroll and why it could be a good idea to make the switch.
1. There’s less room for error
One of the biggest benefits of outsourcing payroll is that when you leave it to the professionals, you know it will be done correctly. Payroll can be a daunting task, and when you’re faced with that many numbers, there’s always the possibility of making a mistake—particularly if payroll isn’t your specialty.
When payroll is done in-house, it’s typically just one more task on someone’s already full plate. A company that specializes in payroll management, however, will have the time, skills, and software required to ensure accuracy and efficiency.
2. It saves you time
Payroll can be incredibly time-consuming, as it involves much more than paying your employees. From onboarding new employees and tracking time worked to calculating wages owed and benefits management, more time and effort go into the process than one might expect.
As a business owner, your role within your company is likely centered around being creative, determined, and innovative. Dealing with payroll can take time and focus away from what it is you do or create within your business. Outsourcing payroll and all that it involves can help you get back to doing what you do best by working on tasks that align with the mission and purpose of your company.
3. It can save you money
Outsourcing payroll can save you money in several ways. When you have more time to focus on the needs and purpose of your company, your business will ultimately continue to grow—which means your revenue will increase as well.
Making payroll mistakes can be incredibly costly. Working with a professional employer organization or PEO that manages payroll not only means you won’t need to hire and pay a specialist in-house, but you’ll also be able to avoid common payroll mistakes. When you outsource your payroll to a full-service provider, the entire process can be streamlined affordably.
4. Your taxes will be done accurately
Doing taxes for your business can be tedious, intimidating, and somewhat complicated. You might fear what would happen if there was a mathematical error or if something wasn’t filed correctly. Outsourcing your payroll helps ensure your company’s taxes are done accurately and on time. You won’t need to spend hours learning about payroll taxes, double-checking your calculations, and doing it all within the proper timeframe.
5. Any issues are handled by the experts
If an issue arises, you can rest assured that your full-service payroll management company will be able to resolve it. Things like workers’ compensation audits will be taken care of without you needing to do anything. Not only will this release a massive burden from your shoulders, but it can save you time and money in the long run.
If you’re a business owner who’s feeling overwhelmed by administrative tasks like payroll, consider outsourcing to a PEO to save time and alleviate stress. Keep these 5 benefits in mind as you weigh your options when it comes to payroll management.
As a business owner—whether you have one employee or one hundred—having workers’ compensation insurance is essential. While it isn’t legally required in every state, depending on the size of your company, it’s still a necessity for protecting your employees and your business.
If one of your employees gets injured at work, workers’ compensation can cover their medical expenses, rehabilitation costs, and any lost wages they might be owed while they aren’t able to work. Without workers’ comp, you could be responsible for paying their medical bills and any other expenses related to their injury. Not only can workers’ comp help ensure your employee receives the care they deserve, but you’ll be financially protected as well.
Traditional policies have their pros, but if you own a small or mid-sized business, it’s important to weigh all of your options. Let’s take a look at how PEO worker’s compensation might differ from a traditional policy and which one could work best for your company.
What is a PEO and How Can They Help?
Professional employer organizations (PEOs) are typically full-service providers that handle administrative tasks for other businesses. This type of partnership is known as co-employment. PEOs often manage payroll, employee benefits, workers’ compensation, and human resources.
Small businesses usually don’t have a ton of extra manpower for administrative tasks. Oftentimes these tasks are piled onto the to-do lists of employees who already have a lot on their plate. This can leave more room for error and less time to focus on their own work within the organization. PEOs step in to help streamline the process and ensure everything is done correctly.
PEO Workers’ Compensation
PEO workers’ compensation tends to be incredibly flexible in terms of coverage, cost, and duration of coverage. Small businesses that primarily hire independent contractors may need short-term coverage for certain projects. Pay-as-you-go programs are a great way to make workers’ compensation more affordable and accessible. This approach can help ensure that business owners will only need to pay for what they use.
How does it Differ From a Traditional Policy?
First and foremost, traditional workers’ compensation policies tend to be more costly—particularly for small businesses that may not have a ton of extra cash allotted for workers’ comp. When you partner with a PEO, part of their role is risk management. PEOs can implement safety training programs to help reduce the likelihood of workplace accidents. By creating a safer work environment, you boost employee morale as well as save on the cost of workers’ compensation.
Choosing What’s Right for Your Business
There isn’t one-size-fits-all when it comes to workers’ compensation insurance. It’s crucial to consider exactly what it is that your company needs before making a decision on what type of policy is right for your business. What type of covereage is required for your industry? How many employees does your company have?
It’s always a good idea to get quotes from multiple providers. Compare and contrast cost as well as what you’ll actually be paying for. Are the policies customizeable or is there no flexibility in tailoring the policy to your specific needs?
Consider the level of customer support you’ll be getting with your policy. How responsive is the insurance provider? Do they have open lines of communication and are readily available to help with any questions you might have?
A final note
For small or mid-sized business owners, it’s important to weigh all of your options. When choosing between PEO workers’ compensation or a traditional policy, keep these things in mind to help you make the best decision for your company.
Whether you’re a business owner or an employee, workers’ compensation insurance is a great way to help ensure that you’re financially protected if a workplace injury occurs. In some instances, common myths about workers’ comp can deter employers from getting it for their employees or deter employees from seeking the help they need. Keep reading to learn about the top 5 misconceptions about workers’ compensation in Florida.
Myth #1: Workers’ Compensation is Too Expensive for Small Businesses.
Though traditional workers’ compensation policies can be costly for small businesses, there are other options. Professional employer organizations (PEOs) offer affordable workers’ compensation insurance with a pay-as-you-go approach.
Some small businesses hire people on a project-to-project basis, meaning they won’t need workers’ comp coverage indefinitely, but only for a limited time. The flexibility of PEO workers’ comp often works well for small businesses that need something more specific to their industry with the option for short-term policies. Choosing a pay-as-you-go program means you’ll only pay for what you need.
Myth #2: I’m not eligible for workers’ comp if the accident was my fault.
Workers’ compensation is meant to protect you from any accidents that take place while you’re on the job—whether or not you’re technically at fault. However, you may not be eligible for compensation if you’re injured due to your own recklessness at work. If you’re found to have been intoxicated from drugs or alcohol when the accident occurred, you likely won’t qualify for benefits.
Myth #3: Only large corporations need workers’ compensation insurance.
Depending on the size of your business, the industry of work you’re in will likely dictate whether or not workers’ compensation is needed. Though in some states, small businesses aren’t legally required to have workers’ compensation, it’s always a good idea to have it. No matter how close you are with your employees, if someone gets injured at work, they can still sue you for damages. It’s far better to be safe than sorry when it comes to a potential lawsuit.
Additionally, in the incredibly unfortunate event that one of your employees dies from their injuries, their family members can choose to sue. Even with very few employees, workers’ comp can help protect your employees as well as you and your business financially in the event an injury occurs.
Myth #4: I could get fired if I try to seek compensation for an injury.
If you have a workplace injury, it’s your right to seek the compensation you deserve. In some cases, people who are injured on the job don’t seek compensation for their injury for fear of being fired or treated poorly at work. If you seek compensation after a workplace accident and your employer retaliates with negative treatment at work or fires you unjustly, it’s crucial that you file a complaint. You can reach out at a state or even federal level if this takes place.
Myth #5: I didn’t get medical care right away so now it’s too late.
Though it is your safest bet to get medical care right away, it’s also understandable that the adrenaline from the accident may initially mask any injuries. It is crucial that you at least notify your employer of the injury as soon as possible—at least within the first thirty days of it taking place. When you do, include as many details as possible in terms of your injuries. Mention everything you can, even if the sensations you feel are mild. It can sometimes take days or weeks for pain to really sink in after an accident.
No matter what type of career you have and how careful you are on the job, accidents at work can happen every day. Workers’ compensation laws can help protect employees by ensuring they receive the compensation and support they need in the event that they’re at work.
Each state has its own rules and regulations regarding workers’ compensation. In Florida, the process of receiving compensation due to a work-related injury can be daunting. Whether you’re an employer or an employee, before an accident occurs, it’s a good idea to have a complete understanding of workers’ compensation laws in Florida and how they can impact you.
What is Workers’ Compensation?
Workers’ compensation is a type of insurance that aims to support any employee who gets injured at work or becomes ill specifically due to their work. Employers pay for this coverage in its entirety, so there’s no cost to the employee. Workers’ compensation typically covers medical expenses, rehabilitation costs, lost wages, disability benefits, and when necessary, death benefits for dependents.
What are common causes of injuries reported in workers’ comp claims?
Depending on the type of job you have, common workplace injuries can look very different from person to person. The Division of Workers’ Compensation offers an extensive breakdown of work-related injuries that took place in Florida, which county in the state they happened, as well as the cause and nature of the accident.
So far in 2023, strains and sprains are the most common workplace injuries, with 8,888 incidents happening in Florida alone. There have been 8,624 slip-and-fall accidents since the beginning of the year. Struck- or injured-by has been the cause of 4,206 work-related accidents so far this year. All other causes of injury—from burns and cold exposure to motor vehicle and heavy machinery accidents, and everything in between—add up to 8,254 cases since the beginning of 2023.
With nearly 30,000 cases in Florida this year alone and over $400 million in benefits, it’s clear how crucial worker’s compensation is for the protection of your employees as well as your company.
Who’s eligible for workers’ compensation in Florida?
To be eligible for workers’ compensation in Florida, you must first be an employee of the company, as independent contractors unfortunately aren’t eligible for workers’ comp. Anyone employed as a full-time, part-time, or seasonal worker will most likely be covered, provided the company offers workers’ compensation.
While most work-related injuries in Florida will be covered by workers’ comp, not all are. It’s imperative that you offer as much evidence as possible to prove you were either injured on the job or became ill as a direct result of your job. If intoxication or misconduct of any kind was a factor in your injury, you likely won’t be eligible for benefits.
If you were injured on the job, it’s important to file a Florida workers’ compensation claim as soon as possible to help ensure you receive the compensation and support you deserve. Seek medical care as soon as you can, and be thorough with your documentation along the way.
If you’re a business owner or manager, payroll is fundamental for keeping track of your employees and how much they need to get paid. It’s a necessary system for ensuring they’re properly compensated for their work.
Despite payroll seeming like a modern luxury, it’s actually been around for thousands of years. The earliest records of payroll stem back to ancient civilizations like Greece, Sumeria, and Egypt, typically recording bartered items or compensation such as food and clothing. Let’s dive into the evolution of payroll processing—what it looked like in the past, how it currently works, and what the future holds.
Looking at Payroll in the Past
Thousands of years ago, ledgers were written on papyrus or etched into stone tablets to keep track of workers and how much grain, food, or clothing they received for their work. Even through the late 1950s, payroll still relied on pen and paper and was done entirely by hand. Manual payroll would remain a common practice until people began using computers in the early 1960s.
By the 1980s, companies specializing in payroll began to step in, which meant businesses could more easily outsource those tasks to professionals. Throughout the early 2000s, emerging payroll software became more refined and even easier to use. As technology has progressed over the last few decades, payroll automation has continued to shift and evolve into what it is today.
How Payroll Works Now
Modern payroll systems are incredibly intuitive and have functions including time tracking, tax withholding, benefits management, and direct deposit. A full-service payroll management system like PEOPayGo is essentially a one-stop shop for all of your payroll, human resources, and workers’ comp needs. You can use the app to onboard new employees, submit hours, and request a payment method change with ease from anywhere in the world.
If you’re looking for a payroll service that offers the flexibility of either running payroll on your own, having it run automatically every week, or having a team of experts run it for you, PEOPayGo is a great solution. With employee self-onboarding and accurate, automated payroll, you can expect a streamlined and hassle-free experience, ultimately saving you time and money in the long run.
What the Future of Payroll Might Be
With the advancements of AI and other software, payroll will continue to become an even more seamless and integrated experience. From saving time for employers to quicker payouts for employees, AI will likely have a massive impact on the way payroll is run.
Additionally, using the cloud for payroll allows employers to access data from anywhere in the world as well as easily expand storage as their company grows. The cloud also allows data to be backed up and software to be updated automatically.
Looking at the past, present, and future of payroll, it’s clear that the evolution of technology has ultimately created more flexibility, ease, and accuracy in terms of what’s in store for payroll processes.
Professional employer organizations (PEOs) are incredibly helpful for business owners who already have
a lot on their plate. PEOs are essentially full-service organizations that handle administrative tasks like
payroll, benefits management, and workers’ compensation claims for other companies.
Workers’ compensation claims can be complex, so it’s a good idea to have support. No matter what type
of company you own, working with a PEO can offer many benefits. Let’s dive into what they can do to
help and why they’re crucial for streamlining workers’ comp claims.
1. They offer risk management to help prevent injuries
Rather than simply stepping in for damage control, PEOs typically implement safety programs to help
prevent workplace injuries from happening in the first place. In some cases, they may help businesses
identify any current risks and offer solutions to help ensure employee safety.
2. Administrative tasks are taken care of
Business owners have countless responsibilities, and their passions often lie more in the creative process
than in administrative tasks. Workers’ compensation claims and all that they encompass can be daunting
When an employee is injured, it’s imperative to report the incident as soon as possible. Starting the
workers’ compensation claim process right away is important for ensuring your employees receive the
care and support they need after an injury. The claim process involves paperwork detailing the incident,
notifying the appropriate insurance carrier, and coordinating the proper medical care.
Using a PEO for workers’ compensation claims is a great way to make space for business owners to
prioritize their strengths. Working with a team of experts helps guarantee the process is documented and
completed with accuracy so that you and your employees are protected.
3. You can insure your employees with a pay-as-you-go program
PEOs like PEOPayGo offer customized programs for companies of all sizes. Pay-as-you-go programs
allow businesses the freedom to only pay for what they use. This helps make workers’ compensation
more accessible for smaller companies and more affordable for larger corporations.
4. Save time and money by outsourcing
Whether you own a small business or a large company, outsourcing is a great way to save time and
money. Working with a PEO for your administrative tasks like workers’ compensation means that you’ll
have a team of trained professionals doing what they do best. When you partner with an experienced
PEO, it frees up time for you to completely focus on your own work.
PEOPayGo has an app specifically for workers’ compensation management. All relevant information can
be stored in a centralized location, and claims can be automated, saving time and money in the long run.
A final note
Navigating the complexities of workers’ compensation claims can be challenging. Working with a PEO is
incredibly helpful for streamlining your workers’ comp process—from offering risk management programs and handling administrative tasks to customizing your insurance and utilizing pay-as-you-go programs.
There are many benefits of using a PEO to help save time and money during the workers’ compensation
- Cost-effective solutions for payroll, HR, and workers’ compensation.
- Expertise in serving the construction industry.
- A willingness to support startups and owner-operators that others may decline.
- User-friendly technology for all skill levels.
- No. 1809 on the Inc. 5000 list.
- No. 75 Industry Ranking for Human Resources.
- A remarkable 309% three-year growth rate.