PEO Workers Compensation

Temporary or contract labor arrangements make it easy for some businesses to keep up with short-term or specialized labor needs without damaging their bottom line and restructuring administrative tasks to handle the new employees. However, there can be challenged associated with making sure the temp employees are given the benefits they may be eligible for under federal or state regulations. One of the most questioned areas of benefits eligibility is that of workers’ compensation.

Tasks of a PEO

Rather than try to navigate the complex and changing water of benefit plans and employer requirements, according to the information at, many small to mid-level businesses will work with a professional employer organization to help with the administration of employee benefits. These companies offer comprehensive business solutions for areas of human resources such as:

  • Payroll
  • Tax withholdings
  • Benefit administration
  • HR-related documentation

A company can rely on the PEO workers’ comp offerings to satisfy federal or state requirements without the headache or hassle of trying to secure an extended policy or determine eligibility. The size of the PEO makes the benefit plans more affordable, as there may be multiple companies relying on the services of the PEO and a better deal is negotiated through the PEO and the insurance providers.

The employer that wants to remain compliant with workers’ comp laws can use an umbrella agency, such as a PEO, to meet coverage requirements.

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