This is a general question as we are in the process of attempting to take clients out of professional Employer Organizations and allow them to be independent. It seems to be working pretty well and we had a great success story recently in that we are saving a client over $100K per year - most of which is due to lower medical premiums.
This company was paying $67,000 per year in admin fees, more than $70,000 more in medical premiums per year than we got on the open market and $5,000 more in workers comp.
My question is are there advantages to being in a co-employment relationship through a PEO that I just don’t see? My research tells me that there are no advantages unless it is the only way a client can get workers comp. I do not understand why there are so many companies in this PEO arrangement.
What am I missing?