PEO FOR CONTRACTORS
Solutions for Oil & Gas Contractors
While most contractors will find benefits in a PEO agreement, Oil & Gas Contractors will find this to be of tremendous advantage.
Contractors can provide service such as valve repairs, pump and compressor repairs, field services such as mud & fluid hauling, over the hole, equipment calibration, wire line services, pigging and pipeline cleaning, pipeline construction, rig maintenance, directional drilling, re-drilling, etc. They perform support functions on site, load and unload, haul product, service & repairs. Depending on their specific line of work, Oil & Gas Contractors need highly specialized Commercial Insurance for their business.
Safeguard Your NCCI Experience Modifier ( E-MOD)
To remain competitive in this field, contractors must maintain a high quality of service and have low experience modifiers. A single claim can adversely affect the Modifier, making the contractor ineligible to work in a Refinery or Chemical Plant until it goes back down to < 1.0. PEO maintain Modifiers below 1.0, usually in the 0.80 – 0.90 range. This allows the contractor to maintain their contracts and continue working in the plants.
PEOs are a tremendous asset to such contractors with their savings on Work Comp rates, on-site safety inspections, and safety training procedures. PEOs can structure employee benefits, Health, 401K, Dental, Life, Vision, all at lower premiums. This enables client companies to attract and retain experts in their fields.
Work With Experienced Safety Managers
PEOs assist office managers & supervisors to develop handbooks customized for their company, and for their industry. They assist in DOL, EPLI, EEOC, IRS, & FLSA issues. PEOs can provide Health Insurance and Benefits, Workers Compensation and Claims Management, Employee Handbooks, and Legal Compliance with Local and Federal statutory laws.
Contractors have similar requirements to Consultants, as they are usually tasked with specific projects or responsibilities. Insurance for Contractors is usually complex, due to the diverse nature of their work. General Liability, Pollution Insurance, Errors & Omissions & Commercial Auto typically form the basic package. The PEO relationship is an ideal complement to their Employers Liability Insurance. PEOs work hand in hand with on-site specialists to reduce injuries and claims. They keep the cost of insurance down by pooling employees into a large group, and can offer health and retirement benefits to employees at greatly reduced rates.
PEOs and HR Managers
Most companies do not have the internal resources to fight Work Comp & HR claims, and have to rely on outside legal counsel. A PEO provides legal counsel for defense and restitution at no cost to their clients. The co-employment agreement assumes liability for HR & Tax related functions, and provides a platform of benefits for employees, becoming an employer of choice and attracting and retaining a skilled work force.
HR responsibilities in the majority of these companies is handled by the payroll department, in addition to their other administrative functions. The lack of a full HR back end leaves the company extremely vulnerable to claims of mishandling wage disputes, harassment, and discrimination complaints.
The PEO co-employment agreement is a powerful tool to help businesses grow their back end HR and Payroll support staff at a nominal cost. PEOs work hand in hand with the office and field crew to provide training to reduce injuries and claims. The co-employment arrangement also indemnifies the employer if there is an employment or an IRS payroll tax dispute, as the PEO is the employer on record for these matters.
The availability of health and retirement benefits at affordable group rates also serves as a strong incentive to attract potential employees.
Businesses with a high employee turnover or a history of frequent Work Comp losses can greatly benefit by partnering with a PEO. PEOs have a low State and Federal Unemployment rate, as well as a low NCCI Experience Modifier. These clients will see a decrease in their operating costs when the PEO becomes the employer on record for taxes.