Outsourcing Your Workers Compensation With a Peo: Why This is a Smart Decision

Worker Compensation

Handling all your company’s HR needs can be challenging, especially when managing things as delicate as workers’ compensation. Outsourcing this service to a third-party vendor, such as a PEO (professional employer organization), is often a great idea for Kansas businesses, for example, particularly those concerned about legal issues. 

Workers’ Compensation is a Critical Protection 

Like all states, Kansas has various workers’ compensation rules you need to consider when running your business. The current law covers all Kansas employees (beyond agricultural companies) with a payroll over $20,000. That includes payroll from outside the state as well as that within it. 

Failing to get workers’ compensation may cause recurring daily financial penalties until you finally purchase a policy. You might even experience legal troubles if you lack the proper insurance and an employee gets injured. Thankfully, you can handle this process in several ways, including:

  • Buying an appropriate workers’ compensation insurance policy from the right team
  • Joining a group-funded workers’ compensation pool to help your team get protection 
  • Qualifying as a self-insurer with the Kansas Department of Labor

There are a few situations in which you may opt some or all of your employees out of protection. For example, corporate employees who own 10% or more stock may not need it. If you’re an individual proprietor or a partnership, you also usually don’t need workers’ compensation. 

Handling Your Compensation Yourself May Be Tiring 

When buying workers’ compensation policies for your employees, you might get easily distracted or frustrated and need help from a team you can trust. It’s all too easy for companies to make purposeful or accidental errors that might result in serious legal and financial ramifications. 

Unfortunately, many of these errors occur due to ignorance rather than malfeasance. For instance, you may simply file your compensation claims improperly or honestly think that your employees don’t require protection. No matter what your reasons, committing compensation fraud is a crime. Potential fraudulent behaviors include:

  • Making false or misleading statements to get benefits, such as faking an injury 
  • Using a false certificate of insurance in lieu of actually buying a policy 
  • Submitting a claim for a healthcare charge that wasn’t actually performed 
  • Incorrectly submitting forms and data and collecting too much compensation 
  • Denying coverage for someone who rightfully earned it by getting seriously injured 
  • Failing to timely file an accident report within 28 days of the injury 
  • Falsely claiming that your employees are exempt from workers’ compensation coverage

Note that these behaviors (whether purposeful or accidental) may cause serious misdemeanor or even felony charges, depending on their severity. Penalties may be as high as $2,000 in a civil trial or twice your annual premium or $25,000, whichever number is the greater of the two. 

How a PEO Helps With Worker’s Comp

A PEO is a separate business entity that can help you with various HR protection. They co-employ your team and handle things like tax preparation, general HR protection, benefits distribution, and much more. They can also help you find workers’ compensation for your team quickly and efficiently. 

The great thing about working with a PEO is that they’re trained to handle these steps for you. Rather than worrying about making mistakes, a PEO will provide accurate support for your compensation protection. They can even shop for and buy policies for you, depending on your needs. 

Kansas state law lets businesses work with PEOs and understand how to create effective insurance packages that benefit businesses. For example, you can buy a policy that helps with rehabilitating injured employees or even reimbursing families if a death occurs after the injury. 

All these benefits make a PEO an excellent investment, especially if you’re buying your first compensation insurance package. They’ll balance your benefits, minimize your premiums, and provide even more advantages. That makes it critical for you to take these policies seriously and to reach out to an investment team that can streamline your shopping process.

Don’t Neglect This Help 

Getting PEO workers comp support can provide you with the help you need to manage this situation quickly and efficiently. It can reduce your risk of making serious errors and ensure that your compensation coverage is effective. Don’t hesitate to work with a pro who understands your needs.

Will Fastiggi
Will Fastiggi

Originally from England, Will is an Upper Primary Coordinator now living in Brazil. He is passionate about making the most of technology to enrich the education of students.

Articles: 945
Verified by MonsterInsights