All Hands on Deck in Tallahassee

From our friends at the Florida Association of Professional Employer Organizations (“FAPEO”).    It could not be said in a more powerful manner the need to continue advocacy for the PEO industry as we continue to grow and be an even more powerful piece of supporting workers’ compensation for the employees of the State of Florida.  I look forward to seeing you there — This will take place on Feb 19-20 2018.

 

 

From: Robert Skrob
Sent: Thursday, January 18, 2018 9:35 AM
Subject: Lies and Insults in the Lawmaking Process

 

You’ve had a string of successful years in the PEO industry. Market share has increased and payrolls grown.

 

This makes our enemies angry.

 

Some people outside of the PEO industry are on the losing side of your growth. When you sign-up a new client that has never worked with a PEO before, that means they are canceling other relationships.

 

Rather than make their offering more competitive, many of those canceled provider complain to lawmakers. They accuse your company of cheating the system, fraud, and failing to pay for injuries. Sure, in the process they do everything they accuse you of, but the reality is lawmakers don’t know that.

 

Lawmakers hear a lot of negative misinformation from people outside the PEO industry.

 

That’s why it’s important for you to tell the other side of the story. To explain to your lawmakers exactly how you help worksite employees get better benefits, help your clients focus on growing their business and how you help government improve compliance and collect more taxes.

 

On February 13-14, we’ll host the Florida PEO CEO Legislative Summit. This event is free, I attached a brochure with more details.  Just RSVP so we can save you a seat.  http://www.fapeo.org/wp-content/uploads/2016/12/2017-PEO-Legislative-Summit.pdf

Here is the hotel information:

There is block of rooms at the Doubletree Hotel located at 101 S. Adams Street in Tallahassee, FL. FAPEO has arranged a special rate of $169.00 per night for this event. You can make your reservation for the night of February 13th using this link: http://bit.ly/2CGrkwo or by calling 1-877-800-2652 and mention that you are with FAPEO.

This event will give you insights into workers’ compensation reform efforts, insider information on how the reshuffle created by lawmakers moving into the Trump administration will impact the lawmaking process and a time to weigh in on issues impacting the PEO industry.

 

Plus, we’ll use the opportunity of having you in Tallahassee to set up meetings for you with your local lawmakers to educate them on how the decisions they make impact your PEO and the clients and co-employees you serve.

 

Our lawmakers will make decisions on hundreds of issues over the next few weeks. Few lawmakers understand what you do and yet they hear a lot of nonsense from those who want to make your PEO less competitive. While we work hard to educate each lawmaker about the PEO industry, there’s nothing as powerful as hearing directly from a company within his or her community.

 

A briefing from you about your company is a lot more powerful than David Daniel or I giving legislators a presentation about the PEO industry in theory.

 

Make your plans now for February 19-20. I attached a brochure with additional details.  Just send Suzanne or me an email to RSVP.

 

 

Workers’ Comp Drug Spend Continues to Drop, According to CompPharma’s 14th Annual Survey of Prescription Drug Management

MAGGIE VALLEY, N.C.–(BUSINESS WIRE)–CompPharma’s 14th Annual Survey of Prescription Drug Management in Workers’ Compensation showed an average 11 percent reduction in payers’ pharmacy spend, driven by a 13.3 percent reduction in opioid cost. The survey analyzed the 2016 pharmacy cost data of 23 workers’ compensation insurance carriers, third-party administrators, self-insured employers, and state funds.

Working with their pharmacy benefit managers, payers cut one of every six dollars in opioid spend, which the report called a “truly remarkable result.” In contrast, across all payer types, pain medication use declined by a scant 1 percent (Quintiles IMS).

“Clearly the efforts of workers’ comp regulators, payers, desk-level staff, PBMs and prescribers have paid off,” said Joseph Paduda, president of CompPharma, LLC. “While we have much left to do, this represents a dramatic improvement in the lives of thousands of patients.”

Payers are far from complacent, with all respondents expressing grave concerns about the risk of opioid addiction or dependency. Most are continuing to refine and improve programs to help patients address pain while minimizing use of opioids, relying on physician and/or pharmacist review of claims, early identification of potentially risky prescribing, and increased use of drug testing.

In contrast, compound drug utilization and spend has dropped dramatically and is no longer of great concern to payers.

A complimentary copy of the 2016 survey can be downloaded from https://tinyurl.com/CP2017RxSurvey.

Internal Revenue Service Posts List of PEO Small Business Efficiency Act Participants

Unfortunately for the PEO industry, there have been cases in the past of payroll tax money not making its proper way to the Internal Revenue Service from a PEO, leaving small employers being forced to repay SUTA and FUTA.  A solution to allow PEO’s to be accredited/certified/recognized by the IRS was sought by NAPEO to help the credibility of the industry and ensure proper payments of tax for American business.

As background and straight off the NAPEO website…

www.napeo.org

On December 19, 2014, President Obama signed the Tax Increase Prevention Act of 2014. Included in this legislation was the Small Business Efficiency Act (SBEA), which created a voluntary IRS certification program for professional employer organizations. It was previously approved by the House of Representatives as a provision in the ABLE Act to off-set the costs associated with that proposal, then incorporated into the Tax Increase Prevention Act of 2014 and passed by the Senate.

IRS PEO certification is important because it:

  • Confirms the certified PEO (CPEO) can pay federal employment taxes under its EIN.
  • Protects customers through the CPEO’s sole liability on wages paid to WSEs by CPEO.
  • Provides certainty with respect to when a wage base restart is not necessary for new customers.
  • Confirms the CPEO’s FUTA credit for all SUTA paid by CPEO or customer.
  • Offers clear guidance for the CPEO and the customer on pass-through of tax credits and employment tax exclusions.
  • Gives increased comfort for potential client with use of an IRS-certified PEO.
  • Lends credibility to PEO business model, especially with investor community and federal regulators.

—–

This is a huge win for the industry in its quest for more market share against the traditional deployment of employment related functions and I believe will become a huge competitive advantage for the current and future participants of this PEO certification.

The initial list is below…Kudos to NAPEO and the 30 or so PEO control groups to take the lead on this initiative.  For those looking to certify, Thom Stohler and Farrah Fielder at NAPEO are standing by to help —  PRH

List of CPEOs

Applicant Name

Street Name

Addr Line 2

City

State

Postal/Zip

Country

Effecctive Date

ACCESS HUMAN RESOURCES LLC

28800 Orchard Lake Road

2nd Floor

FARMINGTON

Michigan

48334

United States

1/1/2017

ACCESS MANAGEMENT LLC

28800 Orchard Lake Road

2nd Floor

FARMINGTON

Michigan

48334

United States

1/1/2017

ACCESS RESOURCE SOLUTIONS LLC

28800 Orchard Lake Road

2nd Flr

FARMINGTON

Michigan

48334

United States

1/1/2017

ADP TOTALSOURCE CO XXI INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE CO XXII INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE DE IV INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE FL XI INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE FL XIX INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE FL XVI INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE FL XVII INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE FL XVIII INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE FL XXIX INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE I INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE II INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE III INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE INC

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE MI VI LLC

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE MI VII LLC

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE MI XXX INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE NH XXVIII INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ADP TOTALSOURCE OF CO XXIII INC.

10200 Sunset Drive

MIAMI

Florida

33173

United States

1/1/2017

ALCOTT HR GROUP LLC

71 Executive Blvd

FARMINGDALE

New York

11735-4709

United States

1/1/2017

AVALON HR 2 LLC

100 S Pace Blvd

PENSACOLA

Florida

32502

United States

1/1/2017

AVALON HR 3 LLC

100 S Pace Blvd

PENSACOLA

Florida

32502

United States

1/1/2017

AVALON HR LLC

9685 Soldier Creek Rd

LILLIAN

Alabama

36549

United States

1/1/2017

AVITUS INC.

175 N. 27th Street

Suite 800

BILLINGS

Montana

59101

United States

1/1/2017

AVITUS TWO LLC

175 N. 27th Street

Suite 800

BILLINGS

Montana

59101

United States

1/1/2017

AXCET HR SOLUTIONS

8325 Lenexa Drive

Suite 410

LENEXA

Kansas

66214

United States

1/1/2017

ENGAGE PEO LLC

3001 Executive Drive

Suite 340

CLEARWATER

Florida

33762

United States

1/1/2017

EXTENSIS II INC.

900 Route 9 North

Third Floor

WOODBRIDGE

New Jersey

07095

United States

1/1/2017

EXTENSIS III INC.

900 Route 9 North

Third Floor

WOODBRIDGE

New Jersey

07095

United States

1/1/2017

EXTENSIS INC.

900 Route 9 North

Third Floor

WOODBRIDGE

New Jersey

07095

United States

1/1/2017

EXTENSIS IV INC.

900 Route 9 North

WOODBRIDGE

New Jersey

07095

United States

1/1/2017

EXTENSIS VI LLC

900 Route 9 North

WOODBRIDGE

New Jersey

07095

United States

1/1/2017

EXTENSIS VIII INC.

900 Route 9 North

WOODBRIDGE

New Jersey

07095

United States

1/1/2017

G&A OUTSOURCING VII LLC

17220 Katy Freeway Suite 350

HOUSTON

Texas

77094

United States

1/1/2017

GENESIS HR SOLUTIONS INC.

One Burlington Woods

Suite 203

BURLINGTON

Massachusetts

01803

United States

1/1/2017

HELM HR LLC

201 South Court Street

Suite 700

FLORENCE

Alabama

35630

United States

1/1/2017

INSPERITY PEO SERVICES L.P.

19001 Crescent Springs Drive

KINGWOOD

Texas

77339

United States

1/1/2017

INTANDEM HUMAN RESOURCES LLC

650 S Cherry St.

Suite 1221

DENVER

Colorado

80246

United States

1/1/2017

JUSTWORKS EMPLOYMENT GROUP LLC

151 West 26th Street

12th Floor

NEW YORK

New York

10001

United States

1/1/2017

LBMC EMPLOYMENT PARTNERS LLC

201 Franklin Road

Suite 200

BRENTW OOD

Tennessee

37027

United States

1/1/2017

MBA PAYROLL SERVICES II INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

MBA PAYROLL SERVICES INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

MIDWEST VENTURES LLC

1200 Internationale Pkwy

Suite 200

WOODRIDGE

Illinois

60517

United States

1/1/2017

MIDWESTHR LLC

1200 Internationale Pkwy

Suite 200

WOODRIDGE

Illinois

60517

United States

1/1/2017

MINUTE MEN SELECT INC.

3740 CARNEGIE AVENUE

CLEVELAND

Ohio

44115

United States

1/1/2017

MODERN BUSINESS ASSOCIATES V INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

MODERN PAYROLL SERVICES II INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

MODERN PAYROLL SERVICES III INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

MODERN PAYROLL SERVICES INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

NEXTEP BUSINESS SOLUTIONS IV INC.

1800 N. Interstate Drive

NORMAN

Oklahoma

73072

United States

1/1/2017

NEXTEP BUSINESS SOLUTIONS V INC.

1800 N. Interstate Drive

NORMAN

Oklahoma

73072

United States

1/1/2017

NEXTEP BUSINESS SOLUTIONS VI INC.

1800 N. Interstate Drive

NORMAN

Oklahoma

73072

United States

1/1/2017

NEXTEP BUSINESS SOLUTIONS VII INC.

1800 N. Interstate Drive

NORMAN

Oklahoma

73072

United States

1/1/2017

NEXTEP INC.

1800 N. Interstate Drive

NORMAN

Oklahoma

73072

United States

1/1/2017

OASIS HR SOLUTIONS III INC.

2054 Vista Parkway Suite 300

WEST PALM BEACH

Florida

33411

United States

1/1/2017

PAYCHEX PEO VI LLC

970 Lake Carillon Drive

Suite 400

ST. PETERSBURG

Florida

33716

United States

1/1/2017

PAYCHEX PEO VII LLC

970 Lake Carillon Drive

Suite 400

ST. PETERSBURG

Florida

33716

United States

1/1/2017

PROFESSIONAL EMPLOYER SERVICES II INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

PROFESSIONAL EMPLOYER SERVICES INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

PROGRESSIVE EMPLOYER MANAGEMENT COMPANY IV LLC

6407 Parkland Drive

SARASOTA

Florida

34243

United States

1/1/2017

PROPEL PEO INC.

669 N. Academy Street

GREENVILLE

South Carolina

29601

United States

1/1/2017

PROPEL PEO OF TEXAS INC.

669 N. Academy St.

GREENVILLE

South Carolina

29601

United States

1/1/2017

RESOURCING EDGE I LLC

1309 Ridge Road

Suite 200

ROCKW ALL

Texas

75087

United States

1/1/2017

S2 HR SOLUTIONS 1A LLC

3001 Executive Drive

Suite 340

CLEARWATER

Florida

33762

United States

1/1/2017

S2 HR SOLUTIONS 1B LLC

3001 Executive Drive

Suite 340

CLEAWATER

Florida

33762

United States

1/1/2017

S2 HR SOLUTIONS 1C LLC

3001 Executive Drive

Suite 340

CLEARWATER

Florida

33762

United States

1/1/2017

S2 HR SOLUTIONS 1D LLC

3001 Executive Drive

Suite 340

CLEARWATER

Florida

33762

United States

1/1/2017

S2 HR SOLUTIONS 2D LLC

3001 Executive Drive

Suite 340

CLEARWATER

Florida

33762

United States

1/1/2017

S2 HR SOLUTIONS GROUP 1 LLC

3001 Executive Drive

Suite 340

CLEARWATER

Florida

33762

United States

1/1/2017

STAFF MANAGEMENT INC.

5919 Spring Creek Road

ROCKFORD

Illinois

61114

United States

1/1/2017

STS ADMINISTRATIVE SERVICES OF FLORIDA INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

STS NATIONAL ADMINISTRATIVE SERVICES INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

STS NATIONAL MANAGEMENT SERVICES INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

STS REGIONAL ADMINISTRATIVE SERVICES INC.

9455 Koger Blvd

Suite 200

ST PETERSBURG

Florida

33702

United States

1/1/2017

SWBC PROFESSIONAL EMPLOYER SERVICES I LLC

30815 US Hwy 281 N

BULVERDE

Texas

78163

United States

1/1/2017

SWBC PROFESSIONAL EMPLOYER SERVICES II LLC

30815 US Hwy 281 N

BULVERDE

Texas

78163

United States

1/1/2017

SWBC PROFESSIONAL EMPLOYER SERVICES III LLC

30815 US Hwy 281 N

BULVERDE

Texas

78163

United States

1/1/2017

SYNDEO OUTSOURCING LLC

3504 N Great Plains Dr Ste 200

WICHITA

Kansas

67230

United States

1/1/2017

TANDEM PROFESSIONAL EMPLOYER SERVICES II INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

TANDEM PROFESSIONAL EMPLOYER SERVICES III INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

TANDEM PROFESSIONAL EMPLOYER SERVICES INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

TANDEM PROFESSIONAL EMPLOYER SERVICES IV INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

TANDEM PROFESSIONAL EMPLOYER SERVICES V INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

TANDEM PROFESSIONAL EMPLOYER SERVICES VII

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

TANDEM PROFESSIONAL EMPLOYER SERVICES VIII INC.

2400 Wolf Rd. Ste. 100

W ESTCHESTER

Illinois

60154

United States

1/1/2017

Last Updated 07/14/2017

Engage PEO Hits INC 500/5000

It is with great pride that I announce that our friends at Engage have hit the INC 500/5000 for 2016!  Hitting the 5000 is a big enough deal but in the top 500 growth companies in the United States is a very special accomplishment.  Congratulations Jay, Midge and the rest of the Engage team!

“Inc. ranked Engage as the 127th fastest-growing private company in the country. The report notes that Engage’s three-year revenue growth exceeded 2,700 percent. Engage ranked as the fastest growing professional employment organization, second among all human resource companies, and 12th of all companies in Florida.”

Having started operations less then five years ago, Engage has grown its coemployee base to almost 25,000 employees at present.  With a focus on healthcare and human resources, the firm’s average client size is arguably almost triple the industry norm at over 60 employees.  With recent hirings of industry stalwarts Steve Scott and Craig Hill, it is my opinion that this is just the opening chapter for Engage.

Congratulations !

-PRH

 

NAPEO’s Annual Risk Management Conference 2016

Risk Management Workshop

March 10-11, 2016
Tampa Airport Marriott

NAPEO’s Risk Management Workshop has evolved into the largest gathering of PEO risk management professionals, carriers, brokers, and agents. Nowhere else will you find the PEO industry’s top risk managers, key insurance executives, regulatory experts, and policy makers gathered for such an in depth look at PEOs and workers’ compensation. Attendees will hear from risk management experts, get tips from leaders in the industry, and be able to take home ideas you can employ back in the office immediately to improve your risk management practices. The workshop will feature hands-on breakout sessions allowing participants to focus your attention on specific topics.

Who Should Attend?

  • PEO risk managers
  • PEO owners
  • PEO senior managers with risk management responsibility
  • Insurance and risk management service providers to the PEO industry

Schedule of Events:

Thursday, March 10, 2016
9:00am – 12:00pm PEO Primer (separate registration and fee to attend)
9:00am – 12:00pm PEO University: Workers’ Compensation Risk Management (separate registration and fee to attend)
12:00pm – 1:00pm Registration
1:00pm – 2:00pm Opening Keynote Session with Rich Fairfax, former Deputy Assistant Secretary for the Occupational Safety and Health Administration
2:00pm – 3:00 pm OSHA Staffing Firm Initiative
 3:00pm – 4:00pm NAPEO & NAIC
4:00pm – 4:30pm Networking Break
4:30pm-5:30pm Insurance Carrier Panel: A Candid Question & Answer Session with the Insurance Carriers Serving the PEO Industry
5:30pm – 6:30pm Networking Reception
Friday, March 11, 2016
7:30am – 8:30am Registration
7:30am – 8:00am Continental Breakfast
8:00am – 9:00am Keynote Session with Mona Carter of NCCI
 9:00am – 10:00am    Utilizing Data To Develop Efficiencies In Workers’ Compensation
10:00am – 10:30am Networking Break
10:30am – 12:00pm Claims Handling
12:00pm – 1:30pm Networking Lunch & NAPEO Legal & Legislative Update
1:30pm – 2:30pm ​EPLI

 

The 2016 Risk Management Workshop was put together in conjunction with the Certification Institute.

CI manages the PEO industry’s WC Risk Management Certification program. Certification provides independent professional verification that a PEO’s risk management program is meeting industry best practices to reduce work-related accidents and health exposures and control WC insurance losses. Certification gives PEO client business owners assurance their service provider has the capability to deliver important risk management results and also provides WC insurance companies with ongoing assurance that a PEO is consistently and effectively implementing industry best practices.

Pricing
Full Workshop Registration – includes all workshop educational sessions, networking break, and networking reception on Thursday, networking breakfast and break and lunch on Friday, and conference proceedings notebook
Members: $595          Non-Members: $925

Reception Registration – includes access to Thursday’s networking reception only
Members: $50           Non-Members: $60

Affordable Hotel Room Rates
NAPEO’s block of rooms at the Tampa Airport Marriott is almost sold out. If you still need a room, please contact Allie Hansen at ahansen@napeo.org ​as soon as possible. Alternatively, if you want to cancel your existing reservation, please contact Allie instead of cancelling through the hotel directly.

Closest Airport
The Tampa Airport Marriott is located inside the Tampa International Airport, just minutes away from all terminals.

NAPEO thanks the following generous sponsors of the 2016 Risk Management Workshop:

Event Sponsors:

AEUH-GroupLogo-10 Libertate Logo
netwise logo_300dpi_4x2 PrismHR_Logo_RGB
 Risk Transfer 2015 Slavic401k–Final Logo-Primary
 

USRiskIncLogoNEW 2012smaller

 

Wi-Fi Sponsor:

Libertate Logo

Networking Reception:

eflex tasc divisionsmaller  KMH_logo2 (3) 

 


Registration Desk:

Fisher_Phillips New Logo 2012_295CMYK (640x272)

 


Lunch:

Barrow Group logo netwise logo_300dpi_4x2

 

Continental Breakfast & Networking Breaks:

AmTrust Underwriters stonehenge logo

 

PEO Primer:

PrismHR_Logo_RGB

 

Lanyards:

Slavic401k–Final Logo-Primary

 

Conference Pens:

BKS Beyond Insight Vertical

 

Questions about the the event?
Contact Robin Schlesinger, (703) 739-8176.​

Questions about room reservations?
Contact Allie Hansen, (703) 739-8174.

Interested in exhibits or sponsorships?
Please contact Nancy Benoudiz, (703) 739-8169.

An Economic Analysis: The PEO Industry Footprint (NAPEO White Paper Series September 2015)

BREAKING NEWS: The National Association of Professional Employer Organizations (NAPEO) has released its latest white paper, An Economic Analysis: The PEO Industry Footprint, in partnership with McBassi & Company, an independent analytics and research firm.  The article below will cover the highlights of the white paper, click an image or link below to download the white paper.

Highlights

Professional employer organizations (PEOs) provide an array of HR services and employee benefits to client organizations, typically small- to mid-sized businesses. This frees those clients to focus their primary efforts on the core business itself, including operations, strategy, and innovation. Our previous research on a variety of measures has found that this arrangement yields significant benefits to PEO clients, as they grow more quickly than comparable other businesses, doing so with lower rates of employee turnover and higher rates of year-to-year business survival. Anecdotally, evidence points to a growing PEO industry driven by a rebounding small business sector, an increase in the use of outsourcing by small businesses, and the rise of complicated employment regulations such as the Affordable Care Act (ACA). Precisely calculating the size of the industry, however, has proved to be tricky due to the fact that traditional sources such as the U.S. Bureau of Labor Statistics (BLS) and Hoovers do not accurately define PEOs and often include non-PEOs in the category. This white paper therefore examines that question from multiple perspectives using a variety of data sources.

We calculate the current size of the PEO industry to be between $136 and $156 billion, as measured in gross revenues (which includes clients’ payrolls as well as the fees charged to clients). PEOs provide services to between 2.7 and 3.4 million worksite employees for 156,000 to 180,000 clients, and employ between 21,000 and 27,000 internal employees. We estimate there are between 780 and 980 PEOs currently operating in the United States. Table 1, below, summarizes the key statistics that emerged from this industry analysis.These numbers indicate the PEO industry has grown significantly since the PEO concept first began to take hold three decades ago. In each of the last 30 years, the industry has added, on average, roughly 100,000 worksite employees and 6,000 net new clients. For perspective, that means that every five years, the PEO industry has added the employment equivalent of the entire utilities industry in the United States.

How large is the PEO industry?

We estimate a range for PEO industry size. Our first calculations apply conservative assumptions wherever applicable, and thus represent lower-bound estimates (essentially, the “floor” for each value). Based on the conservative set of assumptions, we calculate the PEO industry in the United States to be at least $136 billion, as measured in gross revenues (which includes clients’ payrolls as well as the fees charged to clients). Conservative estimates indicate there are at least 780 PEOs that combine to provide services to at least 2.7 million worksite employees in at least 156,000 client organizations, while employing approximately 21,000 internal employees of their own.

A second, less conservative, set of estimates and calculations points to an industry about 15 to 30 percent larger than the more conservative estimates: gross revenues of up to $156 billion, 3.4 million worksite employees in 180,000 client organizations, and 27,000 internal employees distributed across almost 1,000 PEOs.

Click here to download An Economic Analysis: The PEO Industry Footprint to continue learning about the growing and prosperous PEO industry.

National Workers’ Compensation Institute (WCI) and PEO

What a great time at the annual Workers’ Compensation Institute (WCI) last week in Orlando (link below fyi)

https://www.wci360.com/conference

Thank you as always my friends Jim McConnaughhay and Steve Rissman for believing in the PEO industry now…. but even more importantly, at a time when that was not the popular thing to do.  

As the industry surges it should be remembered you were one of the few that understood. These gentlemen have always been our fans.  Have always stepped up and helped to educate others to understand the legitimacy and value of the PEO model.  I can assure you that their actions were not the “popular” thing to do in the insurance arena at the time.

Every year the conference you both co-chair just gets bigger, better and more impactful – 9,000 attendees (largest ever) this year and a full house everywhere I went. Outstanding!

You went out on a limb when few would support the PEO model.  You believed.

From all of us in the PEO industry (if I may be so bold)… Thank you!  

Much, much appreciation — Your support is huge.  10,000 next year 🙂

-PRH

Florida Supreme Court Upholds Exclusive Remedy in Workers’ Compensation Case

http://upload.wikimedia.org/wikipedia/commons/b/ba/Florida_Supreme_Court_Seal_2014.png“The Florida Supreme Court issued a unanimous decision Thursday, December 4, in Leticia Morales v. Zenith Insurance Company, upholding the workers’ compensation system as the exclusive remedy for injured parties.”

Leticia Morales v. Zenith Insurance Company is one of three workers’ compensation challenges before the Florida Supreme Court. The others are Castellanos v. Next Door Company and Westphal v. St. Petersburg which have been featured in previous PEO Compass posts as we watch the case law battleground for the Constitutionality of the Florida Workers’ Compensation statutes.

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