One of the benefits of working with a PEO, or Professional Employer Organization, is that businesses do not have to undergo an annual workers’ compensation audit. PEOs assume responsibility for managing workers’ compensation insurance for their clients, including premium calculations, audits, and claims management.
PEOs manage workers’ compensation insurance for their clients under a co-employment relationship, which means that the PEO becomes the employer of record for the employees. This allows the PEO to assume responsibility for workers’ compensation insurance and other HR functions, freeing up the business to focus on core operations.
PEOs also have access to comprehensive risk management programs that can help businesses reduce the frequency and severity of workplace accidents and injuries. By implementing effective safety programs and risk management strategies, PEOs can help businesses improve their experience modification rating, which can lead to lower workers’ compensation insurance premiums.
Overall, by working with a PEO, businesses can avoid the administrative burden of annual workers’ compensation audits while benefiting from cost-effective insurance programs and comprehensive risk management strategies.
