Small Businesses Help Keep Their Communities Thriving, But Being a Small Business Owner Comes With Its Challenges

If you own your own company, you likely have your hands full with projects and ideas. While handling the day-to-day tasks is necessary to keep your business running smoothly, strategy, creation, and growth are likely areas where you’d rather send your attention.

A professional employer organization (PEO) can manage your company’s administrative tasks like payroll, workers’ compensation, and human resources so that you have more time to focus on what you do best. Let’s take a look at the importance of workers’ comp for small businesses, some challenges that might arise, and how partnering with a PEO can help.

Why Is Workers’ Compensation Important for Small Businesses?

No matter the size of your company, protecting your employees is a top priority. Providing safe working conditions and financial protection for your workers if an injury does occur is imperative for being a great business owner.

Workers’ compensation insurance is required by law in most states. Even in states where it isn’t mandatory, however, it’s still a good idea to have coverage in place.

If an incident happens on the job, workers’ compensation insurance can cover medical bills, rehabilitation costs, and lost wages. For you as a business owner, workers’ comp can help prevent you from paying out of pocket for an employee’s medical expenses after an accident.

Workers’ Comp Challenges in Small Businesses and How PEOs Can Help

Workers’ compensation can be a pain point for some small business owners due to its cost and complexity. While larger corporations typically have the financial resources to handle overhead, it can be difficult for small businesses to manage. How can working with a PEO help combat the challenges small businesses face when it comes to workers’ compensation?

1. PEOs Help Streamline the Complex Process of Workers’ Compensation

Managing workers’ comp can be tedious and time-consuming, especially for small businesses with limited manpower. From calculating premiums to handling the complexities of claims, it’s a lot to manage—particularly when you have countless other tasks on your plate.

PEOs can help streamline the process by integrating workers’ compensation into payroll. They also handle everything involved with the claims process—from managing paperwork to communicating with insurance and the injured employee.

1. 360WorkersComp Partners Offer Flexible Pay-as-You-Go Payroll and Workers Compensation Insurance Programs So You Only Pay for What You Need

With traditional workers’ compensation, businesses typically pay an estimated premium upfront to cover the entire year. At the end of the year, the insurer will perform an audit to determine the exact cost, based on payroll and the number of employees. This means you could be reimbursed at the end of the year, or you may owe money for the difference.

PEOs offer pay-as-you-go programs that are perfect for small businesses that may not be able to afford a lump sum at the start of the year. It’s also great for companies that hire short-term workers on a project-by-project basis. With a pay-as-you-go program, you’ll pay only for what you need during the periods you need it.

1. PEOs Implement Safety Training Programs to Help Avoid Future Incidents

No matter the size of your company, risk management is crucial to keeping your workers safe on the job. Small businesses may not always have the resources to implement robust safety policies like larger companies do. PEOs can implement safety training programs to help mitigate potential injuries.

In addition to helping prevent injuries, PEOs also play a role in reintegrating employees back into the workplace after recovering from an accident.

Partnering With a PEO as a Small Business

Partnering with a PEO can be a game-changer for small businesses. By managing the complexities of workers’ compensation and other administrative tasks, PEOs allow you to focus on what you do best—growing your business and serving your community.

With 360WorkersComp as your PEO and Workers Compensation Insurance partner, you can ensure your business runs smoothly while protecting your most valuable asset: your employees.

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