Breakups aren’t easy, but with HumCap’s help, they are. Are you overpaying for your PEO services? What if we told you that tens of thousands of dollars in savings could be waiting for you outside of your PEO? Keep reading to find out how you can save.
What is a PEO? For small businesses, outsourcing to a PEO (Professional Employer Organization) is like pressing the “EASY” button for payroll, benefits, insurance, HR, and compliance. In fact, PEOs are so easy, that according to the National Association of Professional Employer Organizations, PEOs are a $254 billion industry.
How does it work? The PEO becomes the employer of record (EoR) and you co-employ your company’s workers. The PEO manages employment taxes (through its own TIN), pays the employer share of FICA, Medicare, and unemployment insurance withholdings – passes through those costs to you, then adds an administration fee generally between 5-12% of the gross payroll.
Why dump your PEO? If PEOs are easy and popular – why would anyone want to break up with one?
The answer is simple: COST of GROWTH vs. SAVINGS based on ECONOMIES OF SCALE.
Consider This Example:
An employer with 5 employees has an average employee annual salary of $72K. That’s a $30K monthly payroll with a 10% PEO admin fee. The employer pays $3K in fees per month or $36K in fees/year.
An employer with 25 employees and an average employee annual salary of $72k has a payroll of $150k monthly payroll with a 10% PEO admin fee pays $15K in fees per month. That’s $180K in fees/year!
HumCap, as your HR advisory partner, can save you tens of thousands of dollars annually (and depending on the size of your company, it could be hundreds of thousands of dollars), provide project management and concierge HR service, as well as control over all aspects of your employees’ experience.
How much can you save? Click here to schedule your HR Advisor consultation.
