Among the industries that can benefit from a PEO company, roofers are near the top of the list. Professional, legitimately run roofing businesses are at a serious disadvantage against their competition that employs under the table, cash only paid roofers. A PEO company can level the playing field.
When bidding jobs, a legitimate roofing company must consider much more then just the cost of supplies and hourly wages. They must also consider their payroll taxes and workers’ compensation costs. For many roofers, the costs associated with workers’ compensation may be the biggest factor in determining the competitiveness of their bids.
Before PEO services, small and new roofing companies had little choice in workers’ compensation insurance because few of the traditional insurance companies would work with roofers. The insurance companies that would offer work comp insurance for roofers only worked with large, established companies that had the best safety records. If the traditional insurance company would not write a policy for your company, your only option was to go with a state workers’ compensation program. Either way, whether with a traditional insurance company or going through the state work comp program, roofers workers’ comp premiums were almost completely unaffordable.
Professional Employer Organizations work with roofers to scale down their work comp insurance. When roofers use a PEO company, they can see dramatic savings- which bring down the employee-related costs of the work performed. A roofer can see workers’ compensation savings of 15 – 40% when using a PEO company. Unlike with traditional insurance or a state work comp program that require thousands of dollars to get started plus the monthly premiums, a PEO company will also allow roofers to only pay a few hundred dollars to get started or $0 down, pay-as-you-go terms.
PEO services can provide much more for a roofing business then just large workers’ compensation savings. They can take on the responsibilities of managing payroll- saving time for the roofing business by providing employee checks and depositing payroll tax deposits. Roofers can focus on bidding jobs instead of the many payroll concerns such as possible audits, end of year responsibilities such as W-2s, or preparing government payroll reports ever again.
When the costs and time invested on the payroll move more in favor of the legitimate roofing business, they can bid competitively, win more jobs, and see significant increases in their profits.