Guaranteed cost program versus self-insured group

[Shagster12]

My comments,
Kudos to BBSI. I work at one of those 'Elite' agencies that places business through them.
Our due diligence showed no red flags on their finanacials and we've been placing business there for quite awhile now without problems or concerns.
I have a few clients in their program and they never even consider leaving when their NAD rolls around...
BTW this is the ONLY PEO our agency uses.... So Rob and your counterparts, keep up the good works!
Shagster

[Big Dog]

Which agency?

[Shagster12]

Dog,
I'm not really at liberty to identify where I work but suffice it to say we've been in Ca. over 30 years as a full service agency and have over 100 employees.

[Rob Comeau]

Chris G,

You are correct that a lot of PEO's will load the full employer tax burden plus the comp plus the fees and maintain that price for the duration of the year thus causing a heavy overage on the back end for fees. BBSI works differently however. We do have a constant rate throughout the duration of the year, though we price our account on an annualized basis. What this means is that we average the annual taxes in our pricing and therefore in most cases take a loss in the beginning of the year due to higher tax caps. Once the SUTA/FUTA threshold is met after $7K, then we have a slight overage which is how we collect our fees. This is very evident in our financials as we are light on profit in the 1st two quarters and have better profit margins in the 3rd and 4th quarters due to tax caps being met. Be weary of any PEO that has annualized rate using full tax caps + comp + fees as their backend overage is ridiculous.

Let me know if you have any questions,

Rob

[Rob Comeau]

Shagster,

Thanks for nice endorsement amigo!

Rob