April 14, 2024
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April 14, 2024
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PEO: Can This Be the Solution for Our Health Insurance Crisis?

PEO is an acronym for a Professional Employer Organization. As trusted business partners for small- and medium-size businesses, PEOs deliver cost-effective, outsourced services for health benefit administration. PEO providers know you need Fortune 500-level benefits to win top talent in a competitive marketplace. And, you want cost-effective, flexible benefits that fit into your business plans. PEOs can come with lots of benefits. Some of these services include time and attendance, recruiting, employee training and performance management. Ultimately, our goal is to lower your monthly health insurance premium.

In co-employment, the PEO becomes the employer of record for tax purposes, filing paperwork under its own tax identification numbers. The client company continues to direct the employees’ day-to-day activities. PEOs charge a service fee for taking over the human resources and payroll functions of the client company. Fees can be as low as $50/month per employee (depending on the number of employees). A common concern we hear from employers when presenting them with the PEO concept is losing control of their business, but that’s not the case at all. You will still have complete control over your business, but your PEO provider will take care of liability issues.

For a PEO to be the right fit for your business, the fees must offset the savings on your health insurance. For example: If your business has 10 employees and only 3 are enrolling in health insurance, then a PEO is not the right choice because the fees will be too high for there to be a savings on health insurance. However, if five to seven out of 10 are enrolling, then the fees will offset the balance and a PEO is defiantly the right fit for you! Don’t stress if a PEO is not right for your business because we at Cosmo Insurance have other options for you. Keep reading to learn more.

PEOs offers the following:

Group Health Benefits: Health insurance and dental coverage, HSA and Flexible Spending Account (FSA) options, life insurance, COBRA benefits

Payroll Management: Tax remitting and filing assistance, payroll review, real-time entry, direct deposit services

Risk and Compliance Assistance: Employment Practices Liability Insurance (EPLI) options, Affordable Care Act (ACA) plan support, unemployment benefits assistance

Technology Platforms and Support: Mobile app access, time-off tracking assistance, expense reimbursement support

HR Support: Industry support and specialization, employee onboarding, benefits enrollment

Important: This year husband-and-wife and single-employer insurance group plans will be terminated from their existing plans (i.e., a group that has one owner and five employees and only the employer is enrolled in a health insurance plan. Will not be able to reenroll unless one of their W-2 employees enroll as well). But don’t stress—we have a solution for you that is a huge game changer.

Cosmo is now partnered with Employer Health Association, which is for self-employed or single-member businesses to receive health benefits like large corporations at affordable rates. On top of it, EHA will help you set up a wide-ranging benefits package and risk management plan that will include dental, vision and other wonderful benefits, like fortune 500 companies receive.

Most self-employed individuals had three options to get insurance: They had to either shop through the exchange, direct through the carrier or through a broker. These options would only allow them to be covered in the state of New Jersey (at an extremely high premium). But now with EHA you can receive health insurance rates at an affordable price and be covered outside of New Jersey.

We get it. Your business has a budget. You often can’t spring for the broadest and most expensive benefits just to get great coverage. Too often, high-dollar packages only put small operations in the red.

Rather than make a risky investment, let our team help you. Join Employer Health Association, and through membership, you’ll receive access to benefits support managed by a top-rated group of industry professionals. We have decades of experience in benefits management and strive to help our members govern their internal and external needs.

To top it off you receive amazing offers through TicketsatWork.com. You can gain access to cost-reduced complimentary perks that give you 20-70 percent off on movies, hotels, shows, concerts, amusement parks and sporting events.

It is our belief that any company that wants broad-reaching benefits should be able to get them affordably. We won’t let cost be a limiting factor in your search for top-notch support. We like to say that every small business owner that works with us will walk away feeling like a Fortune 500 company. So, don’t hesitate. Just give Cosmo Insurance Agency a call. We will simplify the process for you!

By Mark Herschlag

Mark Herschlag is the founder and CEO of Cosmo Insurance Agency, which is based in Ocean County. Cosmo Insurance Agency offers personalized solutions for individuals and businesses looking to obtain health, life, dental, long-term-care or disability insurance. For more information or for a free, no-obligation quote, please call (201) 817-1388 or email [email protected].

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