PEO Workers' Comp for Staffing Companies

Why Workers Comp Is the Staffing Industry Biggest Problem

Staffing companies face a unique workers comp challenge. You are the employer of record for every temp you place, which means you carry the workers comp risk. But your temps work at client sites across many different industries, each with different class codes and risk levels. A temp placed at a warehouse has different risk than a temp placed at an office. Managing class codes, securing coverage, and handling claims across all these environments is a massive administrative burden.

• You are the employer of record for every temp employee
• Temps work across many industries with different class codes
• Each client site has different risk levels and requirements
• Variable payroll makes traditional policies hard to budget
• Temp employees have higher injury rates than permanent staff
• Client insurance compliance is a constant administrative burden

How a PEO Solves Staffing Workers Comp

A PEO provides a master workers comp policy that covers all your placed employees. The PEO handles class code assignment for each temp based on their client site. Pay-as-you-go billing ties premium to actual payroll, which is critical for staffing companies with variable placements. Professional claims management handles the higher injury rates typical of temp work. And the PEO manages the compliance documentation your clients require.

Why Staffing Companies Need the Full PEO

Workers comp is the biggest challenge, but staffing companies also need payroll processing for variable headcount, benefits for temp employees, compliance management, and HR support. A PEO delivers all of this in one package. The right PEO for a staffing company understands the unique multi-industry, high-turnover, variable-payroll nature of the business. A broker can find PEOs that specialize in staffing and compare their total cost and service.