Tag Archives: unemployment claims

How to manage unemployment claims…from BusinessWeek

Here is a few good pointers from one of the leading HR outsourcing providers in the country…outlined in BusinessWeek online.

http://www.businessweek.com/smallbiz/tips/archives/2010/02/manage_your_ris.html

An easier, more cost-effective way to handle unemployment claims and keeping your unemployment rate down is to hire a PEO, but you already knew that.

Where does my liability start and where does the PEO pick up?

With PEO – Professional Employer Organization, the owner/client is not liable for workers compensation nor unemployment claims.  In some instances, the PEO offers EPLI (employment practice liability insurance) to cover workplace torts such as sexual harassment suits or wrongful termination suits. 

Does HR Outsourcing save Money?

A better question would be, is time = money?
 

If you recognize that time is money, then a company that engages a PEO or ASO or other HR outsourcing solutions will definitely save money.  In particular, there are areas where a company employs staff to handle time consuming hr functions.  This time can be freed up with a PEO or ASO, allowing more time on strategic functions or revenue generating areas of the business.
 

A PEO or ASO will save a company time by writing employment policies and producing employee handbooks, researching medical insurance plans, implementing a loss control program, providing HR and compliance training for managers and supervisors, benefits administration, vacation and sick leave tracking, responding to unemployment claims, records administration, and many other hr functions.
 

In addition, you will possibly see hard dollar savings by consolidating your current hr functions to one provider.  For instance, instead of separate payroll provider, 401(k) administrator, workers’ compensation and unemployment claims management, Section 125 administration, insurance plans, COBRA administration, etc., and paying fees for these services as a small business to multiple vendors, with a PEO or ASO, you are paying one vendor.  Thus, eliminating margins to various vendors and saving money. 

HR outsourcing and PEO

When going for an HR outsourcing or PEO solution, it helps to know the subtle differences between the available models. 

One of the key components of PEO (professional employer organizations) that is overlooked is the employer liability.  With a PEO, since a company has partnered with a PEO, the PEO is responsible as the “employer of record.”  Thus off-loading any workers comp or unemployment claims to the PEO.  With other models…since they are not the employer of record, any fines or state of federal issues are the problem of the client.