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Workers Compensation Agents in Florida
Florida Workers Compensation Agents will soon face many challenges in the wake of the recent Florida Supreme Court ruling. Industry leaders and workers compensation underwriters have newly raised concerns as to whether or not other large market states will use this ruling as a precedent. Meanwhile, Comp Brokers and Agencies are looking for alternative workers compensation solutions for their clients.
Writing new business and client retention have both been difficult in recent years. Now, with a significant increase in comp rates here in Florida, many agencies are exploring other avenues such as employee leasing and bundling products to protect and retain their comp clients, while others believe their business will not be very affected since the increase in statewide which in turn should keep the competitive playing field level.
Unlike other Workers Comp based businesses, Simple Work Comp expect their market share to grow substantially through its PEO and Employee Leasing programs. As Florida business owners begin to feel the financial squeeze of increased rates, they will be more accepting and open to unconventional ways in obtaining affordable workers compensation.
All Workers Compensation Agents should take the time to learn about employee leasing and how it benefits them and their clients more so than a straight-up comp policy. In the long run both Agents and their clients save a great deal of time using employee leasing. Neither have to deal with claims, compliance or other painstaking non-rewarding comp related issues.
Every Workers Compensation Agency can gain from exploring their options. Agents can learn more by clicking on the link below.
Comp Agents & Employee Leasing
For more information on how your Agency can benefit from working with us, please contact me directly at 813-684-5684, or ask to speak with one of our senior consultants.
Frankie VanDeboe
Founder & CEO
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Workers Compensation Rate Increase 17.1%
Florida business owners may soon be paying nearly 20% more for their workers compensation coverage. In response to a recent decision from the Florida Supreme Court, the National Council on Compensation Insurance (NCCI) filed a 17.1 percent rate increase with the Florida Office of Insurance Regulation (OIR) on all new policies, as well as renewal and additional policies in effect on a “pro-rata” basis.
The Supreme Court’s decision is also expected to increase overall system costs in Florida for accidents that occurred prior to August 1, 2016 that are open or could be re-opened. Unfortunately, the expected 17.1% mid-year across-the-board rate increase does not consider the retroactive impact of the Castellanos decision. The NCCI anticipates that this will create significant unfunded liability for the retroactive impact of the Castellanos decision. Therefore, NCCI is still evaluating the expected retroactive impact at this time and MBA will update you again when additional information is available.
Lowering Workers Comp Rates – Use Employee Leasing
What is Employee Leasing?
The biggest misconception about “Employee Leasing” is its name, which implies “the leasing of employees”; the staffing by another party such as a “Temp Agency”, or “Staffing Company”. This is not what an Employee Leasing Company does… not even close.
An Employee Leasing Company, aka PEO (Professional Employer Organization) is a firm that provides a service under which an employer can outsource employee administrative tasks, such as all payroll, employee benefits, workers’ compensation, risk/safety management and healthcare. A PEO bundles all of these services together in one bill.
A key service provided by a PEO is securing work comp insurance coverage at a lower cost than their client can obtain on their own.
Benefits to Employer
Employers utilizing the services of a PEO are able to focus on the big picture of growing their business by eliminating day-to-day administrative tasks. Small businesses have a better success rate when using a PEO.
- Obtain High-Risk Work Comp
- Compliance Assurance
- Lower Premiums
- Better Success Rate
- Reduce Administrative Expenses
Is Employee Leasing right for your Florida Business? Click here to learn more or call us at 1-866-684-5684.
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Employer Health Care Obligations 2015
As the Obamacare Affordable Care Act battle continues in congress, employers are trying to figure out what their healthcare obligations are going to be to their employees. Small companies with 50 employees or more need to have a Health Care Plan for employees who work 30 hours or more. This is going to be costly and time consuming. Small companies typically do not have the administrative and/or financial resources to keep up with changes in Health Care, Insurance Compliance and still run a business.
As the new Affordable Care Art takes effect, companies may struggle… but they must fulfill their Employer Health Care Obligations or be fined. Employee Leasing is one of the best solutions to the Affordable Care Act. Employee Leasing (not what it sounds like) has been around for a long time and is provided by a PEO (Professional Employer Organization).
What does a PEO do?
PEO’s run like clockwork and allow a business owner to outsource employee management tasks, such as benefits, payroll and workers’ compensation, recruiting, and risk/safety management. In short, when you sign up with a PEO your employees become part of a much larger company; a company that has tremendous buying power and influence over insurance carriers. A PEO provides the insurance you need, and handles all of your payroll and payroll tax liabilities. Sometimes a company will use a PEO (Employee Leasing) to get affordable workers’ compensation insurance.
How much does it cost to use a PEO?
A PEO charges a percentage of your total payroll which in most cases cost much less than paying your accountant, or your office administrator.
Learn more about the benefits of employee leasing.
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A slowly growing employment and business trend known as “co-employment” could make more inroads into Central Pennsylvania in years to come. But at the moment, few businesspeople even know what it is and how it could benefit companies.
Simply put, co-employment… or employee leasing is not staffing. Instead, it is an agreement whereby your company hires, fires and manages your employees, like telling Joe Dude what job he’s working on today or how to deal with a client or that he’s underperformed and it’s time to go elsewhere.
In a co-employment business deal, what you won’t be doing is managing your employees’ benefits, taxes, payroll and even your compliance with workforce-related regulations.
That’s the job of your co-employment consulting firm, often called a “professional employment organization” or PEO, which is like having a benefits administrator, payroll company, accountant and general business consultant all rolled into one, according to a national PEO trade group.
“I always compare it to having someone do my taxes,” said Pat Cleary, CEO of the National Association of Professional Employment Organizations. “What he does is minimize my risk.”
Essentially, that’s what a PEO does: minimizes the risks associated with a small business getting its taxes, payroll or regulatory compliance wrong and paying huge fines or worse, he said.
The employees are full-time members of your company, and the liability is shared by the employer and the PEO, distinct differences from staffing firms.
PEO arrangements allow small-business owners to focus on growing their companies instead of worrying about the back-end nuts and bolts.
Owners went into business because they had a passion about something, whether it was fixing old cars or manufacturing, and PEOs allow them to focus on that passion.
Usually, companies using co-employment have between 20 and 500 employees.
Co-employment is helping small businesses around the country, but the reach of the trend is difficult to calculate.
PEO-using companies are growing about 12 percent faster than your average company. In 2010, the PEO industry grew by 14 percent to $81 billion in gross revenue, defined by total client payroll and fees paid to PEOs, according to the association. It based the numbers on its membership.
There are about 700 PEOs operating across the country, according to the association. But finding one near you could be difficult.
A search of the association’s PEO directory for Pennsylvania lists several in New Jersey and New York. Three PEOs were listed in Pennsylvania, one each in Pittsburgh, Montoursville and Weatherly. Cleary said the database is built on association membership and lists from states that require PEO registration.
Pennsylvania does not require PEO registration, according to the state Department of Labor & Industry.
The Business Journal called about 10 staffing and benefits companies as well as groups helping small businesses. Most groups either did not return phone calls or, if they did, were unfamiliar with co-employment and PEOs. Others often confused co-employment with staffing.
About 30 percent of PEOs also own staffing companies, so they can provide diverse services to client companies. In those cases, they might not be advertising the PEO service as heavily as their staffing. Either way, it’s not surprising that others are unfamiliar with PEOs even though they’ve been around for more than 30 years.
Grow your business – leave the management of employees to the experts at Simple Work Comp
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Many small business or practice owners with employees decide to outsource payroll and related tax duties to third party payroll service providers. This helps employers meet filing deadlines and deposit requirements and streamline business operations. Some of the services provided include administering payroll and employment taxes on behalf of the employer. The service provider also reports, collects, and deposits employment taxes with state and federal authorities. This can be a very effective way to deal with paperwork and time required however, you should keep in mind that you are always responsible for the deposit and payment of federal tax liabilities. If the third-party fails to make the federal tax payments, the IRS may assess penalties and interest on your account. The employer is liable for all taxes, penalties, and interest due and may also be held personally liable for certain unpaid federal taxes. So, its always important that you understand what the requirements are and keep track of what is taking place.
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While it sometimes may seem nothing makes employees happy, the fact is keeping employees happy might be easier than you think. When asked what components contributed to overall job satisfaction, workers repeatedly identified the same two items:
- Trust and confidence in leadership. Trust and confidence in leadership was the single most reliable predictor of employee satisfaction. Cultivate an atmosphere of caring in your workplace. Not only does it increase satisfaction but it also help reduce turn-over rates, absenteeism and other common problems.
- Clear and Effective communication. Although it sounds simple, most small business owners really aren’t that good at effective communication. Effective communication by management was key to winning organizational trust and confidence Satisfied employees are likely to stay with you. Happy employees are productive and productive employees make your business a success. It is easy to increase job satisfaction if you know how.
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Small business owners should know which questions are illegal to ask during an interview. Unfortunately that is easier said than done. Appropriate questions are based upon anti-discriminatory laws that vary from state to state. A variety of federal, state and local laws prohibit employment discrimination, included basing a hiring decision on a protected trait. Generally speaking, the following are illegal in all states so avoid asking any questions that will reveal the following information about a potential employee or applicant:
- Age
- Religion
- Race
- National Origin
- Gender
- Citizenship (Although you may inquire about employment eligibility)
- Disability
- Union membership
- Marital status (depending on the state)
- Workers compensation history (depending on the state)
- Prior arrests or convictions (depending on the state)
- Sexual orientation (depending on the state)
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Many small business owners really aren’t sure whether or not their workers are employees or contractors. In fact, some contractors would be surprised to learn they actually are considered employees by government standards; unfortunately, even the most well intentioned small business owners could be at risk for costly lawsuits by making even a simple mistake when it comes to properly classifying workers. Here to help determine whether your worker is an employee or contractor are a few of the factors the government uses to distinguish between the two just keep in mind, there are no less than a half dozen different laws each with different requirements so this is just a general guideline.
- Control. Contractors are typically in control of how work is performed, when it is performed and other specifications. They operate independently of your business and utilize their own discretion in critical questions related to quality, scheduling and other major decisions.
Independence. Contractors have a large degree of independence and latitude when it comes to their work. Outside of meeting the specifications of the contract, they also typically work for themselves
- as evidenced by billing, other clients, business license, training programs etc.
- Risk. Contractors bear their own legal risk as well as reward in relation to work performed.
- Delegation. Contractors can delegate work unless specifically prohibited by the original contract workers cannot delegate and are typically responsible for their own work.
- Tools and Equipment. Contractors typically provide their own tools, equipment and training with the exception of specified or proprietary materials related directly to the project at hand (and which remain in the ownership and control of the employer).
Make sure your small business understands how to properly classify workers; better yet, let someone else handle it all for you at a fraction of the cost and time required to do it yourself. Remember, it’s completely tax deductible and allows you the extra time required to grow your business during these tough economic times.
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