Posts Tagged ‘Electronic’

Lower Montana Workers Compensation Insurance With Professional Employer Organizations

March 15th, 2022

Many Montana businesses are gasping for air and struggling to survive in what is still a slow-to-recover recession. As Montana businesses are trying to maintain operations and wait out the storm, the mandatory costs associated with paying employees is intimidating. One payroll cost that is out of control is Montana workers’ compensation insurance premiums. In 2008, it was reported that Montana workers’ compensation insurance is the second highest for workers compensation premium rates in the United States.

Because of the slow improvement of the Montana economy, businesses are seeking effective ways to reduce Montana workers’ compensation insurance premiums and other employee-related costs, while still being able to promote growth and productivity. With the “Montana Professional Employer Organizations and Groups Licensing Act”, the Montana legislature has expressed that using PEO companies, also known as employee leasing services, may be the light at the end of the tunnel and that “there is a public need for these professional employer services.”

What does this mean for the average Montana employer? Professional Employer Organizations can save employers a huge percentage on their workers’ compensation rates. When obtaining Montana workers’ compensation insurance on their own, small businesses are faced with paying extremely high premiums, much of which is required up front in the form of a deposit or down payment. Using a PEO service, employers are able to have their work comp purchased through a master policy, combined with thousands of other employers. Doing so allows for substantial rate reductions, resulting in the ability to save significant amounts on the cost of Montana workers’ compensation insurance. For some Montana businesses in high risk industries such as forestry service and roofing, this can be as much as $10,000 a year or more in work comp yearly premium savings.

When Montana employers are able to pay less on insurance costs, they are able to operate their business more competitively and attain more work then their competition. Using PEO services is almost a necessity for employers searching for ways to save money on Montana workers’ compensation insurance and other payroll costs.

Choosing a PEO is a struggle in itself though if you are going at it alone. Obtaining quotes is time consuming and stressful. Finding a PEO broker who has access to hundreds of individual PEO companies and specializes in finding the best PEO service for each business’ individual needs is crucial to getting the most out of using professional employer services.