There are many industries that are benefiting in a huge manner with the advent of PEO (Professional Employer Organization) companies. Among such industries, roofing companies must be at the top. This is because of the presence of roofers that employ people indirectly to save on money that is a must for legitimately run roofing organizations. There are workers, who just to get paid jobs are ready to work for such unscrupulous companies. But all this has changed with the coming of PEO services.
When bidding for tasks, legitimately run roofing companies not only have to think about materials and salaries of workers but also payroll taxes and workers compensation costs. Big time roofers lost their competitive edge against those roofers who employed people by cash and got new workers after they got new jobs every time. Such roofers did not have to follow all the rules and regulations of the state regarding payroll taxes and worker’s compensation.
Again, before these PEO companies arrived on the scene, small and new roofing companies had little choice when it came to choosing insurance companies for worker’s compensation etc. Large insurance companies obviously liked to work with big time roofing companies with a proven track record of safety. This meant that small companies were at a disadvantage in comparison to large, already established roofing companies. They had no choice but to go for the services of state worker’s compensation program which increased their premium costs too much making them lose their competitiveness.
But when roofers get associated with an efficient PEO company, all their worries about issues related to employees are taken over by these PEO companies. Whether it is payroll taxes or worker’s compensation premiums, all issues are looked after by PEO Company thus translating into huge savings for the roofers, irrespective of the size of the company. On an average, a saving of 15%-40% accrues to the owners of roofing companies on worker’s compensation packages when using the services of a PEO company. In sharp contrast to large insurance companies that require payment of thousands of dollars to start such a compensation package, PEO companies require only a few hundred of dollars upfront for these services.
This is not all as PEO Company also takes over the responsibility of managing payrolls, which is nothing less than a headache for the roofers. This reduces the time and effort of the roofing companies, allowing them more time to concentrate on business activities.
