| "body"> | | | | payroll is a weekly accomplishment. |
| In the "Golden State", even with just one employee, | | | | There are ways to lower workers compensation |
| employers are required to purchase California | | | | insurance premium rates. Many California small |
| workers' compensation insurance. For struggling small | | | | businesses in high risk industries are jumping onto the |
| businesses, this mandatory requirement, along with | | | | "Professional Employer Organization" bandwagon. Also |
| the escalating costs are debilitating and forcing those | | | | known as PEO's or Employee Leasing Companies, |
| that are still standing to consider closing up shop. | | | | these businesses provide employers a life raft for |
| California has the highest workers' compensation | | | | their drowning businesses. Employers who take |
| insurance rates in the United States, so it's no | | | | advantage of the benefits of using a PEO service are |
| surprise that businesses who provide services | | | | able to waive their current California workers' |
| classified as "high risk" by the California Labor Code | | | | compensation insurance company goodbye with a |
| are being forced into chapter 11. A comment from a | | | | smile. When teamed up with a PEO service, the costs |
| small manufacturing business owner posted on CA's | | | | of their workers' comp is drastically reduced by the |
| Small Business Action Committee website, state that | | | | thousands, sometimes much more. |
| workers' compensation is his second highest business | | | | In addition to giving California's high risk small |
| operating cost next to payroll expenses. He states | | | | businesses a fighting chance to afford work comp |
| that his premiums total more then $300,000 a year | | | | costs, Professional Employer Organizations |
| with under 120 employees. | | | | dramatically reduce other employee related business |
| With the state still in a recession and California taking | | | | costs such as human resource work, payroll |
| a hard hit from a beaten down economy, the | | | | administration, group health insurance and more. |
| unemployment rate has topped 12% as recently as | | | | These savings translate to small businesses finally |
| June 2010. As much as small businesses want to help | | | | getting to use the black pen instead of the red, the |
| fix the broken system, they have their hands tied. In | | | | opportunity to hire and to have competitive labor |
| order to bring the state back to firmer ground, hiring | | | | costs. After a short time using a PEO service, |
| employees and creating jobs is a necessity. But, with | | | | businesses are able to create positive cash flow again |
| California work comp insurance premiums slashing | | | | while gaining higher margins on sales instead paying |
| profits and revenue, keeping current employees on | | | | higher insurance premiums. |