Situation
The masonry contractor was using a PEO (Professional Employer
Organization) and was concerned what it was paying for Workers’
Comp was higher than that of its competitors. It was difficult
for them to determine their rate because the payroll taxes,
Workers’ Comp and additional fees were combined.
Assessment
Certified WorkComp Advisors (CWCA) analyzed the PEO invoice
and broke out the payroll taxes, fees and Workers’ Comp
costs. It turned out that Workers’ Comp came to $59,000
a year. The CWCAs requested payroll data and loss information
and calculated the Experience Mod at .95.
Solution
The CWCAs marketed the Workers' Compensation and secured a rate
of $34,000. Recognizing the importance of making smart hiring
choices to avoid future losses due to poor hiring practices,
the CWCAs worked with the contractor to develop rigorous and
effective hiring practices.
Result
The CWCAs were able to use their expertise in Human Resources
and Workers’ Compensation to assist the contractor in
understanding its costs and secure a savings of $25,000 per
year.
