Time Magazine’s cover story gives a light overview of the impact of the new healthcare bill and its impact for small businesses. Still waiting for more word from the PEO industry on how this will effect their top and bottom lines.
Just got off the phone with a small business owner that is facing a $2,000 fine for non-compliance for some labor law paperwork they had no idea that they were responsible for. Pretty hefty stuff for a 5 man company, right?
Just another reason that small businesses should consider HR outsourcing models like PEO. Imagine having a staff of 50 employees, but no employer liability. Not to mention the savings in a major medical health plan, workers comp and other benefits.
The PEO’s and HR outsourcing service providers that will survive a major shift in healthcare are the ones that have continuously met and exceeded all expectations of their clients on the service side of PEO.
Once the arbitrage advantage of the health is taken out of the equation, sure there will be less margin for PEO to play with, and their will always be clients that look to change as they see the admin fees charged by PEO’s as accessive. We were going to lose them sooner or later due to their insistance that their labor costs are based entirely on gross payroll plus benefits plus taxes.