What Does Your Company Need: PEO or Health Insurance Broker?

With a handful of employees, small companies tend to manage human resources in-house. New legislation, however, is making that harder to do. With the Affordable Care Act (ACA), FLSA overtime regulations and state specific mandates like the Illinois Secure Choice Savings Program Act, employers must manage major shifts in HR requirements to remain compliant. With increasing demands, it may be time to get expert help. Learn about the differences between a PEO (professional employer organization) and a health insurance broker.

PEOs offer full service HR outsourcing

  • Team of HR experts with various specialties
  • Offer diverse coverage options including voluntary benefits such as vision, dental, life, ST and LT disability
  • Clients often are pooled with other clients to create buying power
  • Access to traditional and “out of box” health insurance solutions not widely offered by health insurance brokers
  • Guidance on state and national legislation to ensure compliance
  • 401K options without fiduciary responsibility and administrative tasks
  • Payroll service includes tax-related responsibilities and resolving any IRS or state inquiries
  • Workers compensation packages suited to industry classification
  • Fees: per employee monthly fee (varies by PEO)

Health Insurance Brokers provide insurance expertise

  • Offer limited coverage options because licensed to sell certain plans. Clients may need multiple resources to get full suite of coverage
  • May not offer voluntary benefits to smaller clients due to carrier restrictions or minimal commission incentive
  • Do not offer HR guidance, 401K, payroll or workers compensation
  • Fees: commission based on plan secured

For employers struggling to manage HR, PEOs offer one-stop shopping. Brokers can secure health insurance, but don’t offer other HR related services. Which provides the most valuable benefits for your organization?

If comprehensive HR services are needed, not all PEOs are created equal. MidwestHR, a top PEO in Illinois, boasts a 96% client retention rate by focusing on the needs of the client. Unlike other PEOs, MidwestHR offers customized a la carte services without a long-term contract. That allows clients to only pay for the services needed. With a dedicated HR expert, clients don’t waste time retelling details to call center reps. Call today to discuss how we can best help.