PEO with Carve-Outs - Types of Professional Employer Organizations (PEOs)
Employer of Record Responsibilities
With a Carve-Out PEO:
Considerations for your company:
Workers’ Compensation Insurance
With a Carve-Out PEO:
Considerations for your company:
Coverage provided under PEOs master policy.
Same as "Classic" PEO arrangement.
Coverage provided under your own "stand-alone" policy.
If your company currently has an attractive Workers' Compensation insurance policy in place, some PEOs can "carve out" your coverage under their master policy and assist you with administering your own policy. In some cases a PEO may (due to coverage limitations of their master policy) assist you with obtaining your own "stand alone" policy. Companies engaged in high risk occupations may present a challenge for a PEO and some PEOs cannot accept them. In any case a StaffMarket participating PEO should provide coverage alternatives.
Safety and Risk Management
With a Carve-Out PEO:
Considerations for your company:
Coverage provided under PEOs master policy.
Same as "Classic" PEO arrangement.
Coverage provided under your own "stand-alone" policy.
If the PEO is assisting you with obtaining your own policy, then the PEO will take on a more advisory capacity...any adverse claims experience will affect your experience rating and not theirs.
Health Plans
With a Carve-Out PEO:
Considerations for your company:
Coverage provided under PEOs master policy.
Same as "Classic" PEO arrangement.
Coverage provided under your own "stand-alone" policy.
If your company currently has an attractive Health Plan in place, some PEOs can "carve out" your coverage under their master policy and assist you with administering your plan. PEOs can assist you with obtaining your own "stand alone" health plan if they cannot offer coverage under a master policy.
Employee Benefits
With a Carve-Out PEO:
Considerations for your company:
Human Resources
With a Carve-Out PEO:
Considerations for your company:
Regulatory Compliance
With a Carve-Out PEO:
Considerations for your company:
Several forms of PEO relationships are available to most businesses and many PEOs can offer multiple options. Let StaffMarket help you find the right option for your company.
