As soon as you hire an employee, even a part-time one, Colorado requires businesses to carry workers’ compensation insurance. Getting a good rate on insurance as a small company is tough, plus there are a lot of regulations you suddenly have to master to avoid trouble with the government.
There is a way to get help. Hiring a Colorado PEO that offers workers’ compensation services through NetPEO lets you handle your workers’ compensation responsibilities without interfering with your core tasks or worrying about regulations. Our skilled HR professionals will handle it for you.
How Does Workers’ Compensation Help My Employees and Me?
Workers’ compensation is a way for employees to get compensation for workplace injuries without taking their employers to court. This system saves both parties significant legal fees and helps employees cover their bills quickly while they’re out of work.
Workers’ compensation insurance in Colorado usually pays out in four ways. The most common are medical benefits and income benefits. Medical benefits pay for all care related to the work-related injury, while income benefits give injured workers a large percentage of their paycheck while they recover.
Should your employee pass away on the job, there are also death benefits that can go to the family and burial benefits for funeral expenses. Our HR professionals can also tell you if your employee’s death may put you at risk for a wrongful death claim and when you need to consider legal advice.
Partnering with a PEO Gives You Leverage
You might think that outsourcing your HR needs outside of a PEO will get the job done, but there are some powerful advantages to entering a partnership with a PEO. First, you get access to far more services whenever you need them, like payroll and other HR tasks.
Second, your PEO can use their labor pool to leverage a much more attractive workers’ compensation insurance package. Under a co-management system, your workers will get registered under the PEO along with all the employees from their other clients. Insurers will deeply discount their services if there are more people paying into the same plan.
This means costs go down for you and your employees can stay protected. Your PEO can also handle the paperwork for any claims your employees have and instruct each party on their rights and responsibilities.
What Else Can I Use a Colorado PEO For?
When you partner with a PEO, the contract you write together shows exactly what services they’ll provide. If you need someone just to do workers’ compensation administration, or if you need complete HR and payroll services, there are options for you.
Some of the most popular services include things like:
- Payroll administration
- Recruitment strategies
- Full benefits administration
- Policy creation
- Regulatory compliance and risk management
NetPEO also offers an employee portal service to let your employees get information about their benefits and vacation time, along with asking questions about employee matters. This lets you focus on the most important parts of your business and still give your employees a way to get answers.
What Happens If I Don’t Have Workers’ Compensation?
First, you open yourself up to legal liability from your injured employee. Without workers’ compensation, your employee could file a lawsuit and go after your assets. If they win, it could destroy your business.
Second, you’ll face regulatory penalties from the State of Colorado for not complying with the law. Employers must have workers’ compensation. However, companies are permitted to self-insure instead of using the workers’ compensation system if they meet certain requirements.
They need to be in business at least five years, or be a subsidiary of a company in business at least that long. They also need to have at least 300 full-time employees in Colorado or have a parent company with assets of at least $100 million. On top of that, they need to show proof of excess insurance coverage, a surety bond, and a claims adjuster on staff or through a third-party administrator.
I’m in a Niche Industry. Is There a PEO for Me?
You’d be surprised! Some PEOs specialize in complex or difficult industries because of their unique HR challenges. Some industries we’ve helped with PEOs include things like:
- Real estate
- Health care
- Professional services
- Financial services
If your industry has heavy regulations, we can connect you with a PEO in Colorado with the services you need to protect your employees, scale your business, and avoid regulatory issues. There are more PEOs out there than you think, and we have one of the largest PEO networks in the country.
You Retain All the Control
Co-management doesn’t mean that you have to run all your decisions by us, or that your employees can come to us to go over your head. All of our partners retain full control of their business and its operations.
We only perform the tasks you ask us to do, but we will also give guidance on policies and practices that could put your business at risk. Plus, unlike traditional outsourcing, we can get you better deals on workers’ compensation insurance.
We encourage questions about how you want to share management of your employees so that we know exactly what kind of PEO you need and how to structure your contract to make the division of responsibilities clear. That way, you can enter your co-management partnership agreement with confidence.
Access Quality Workers’ Compensation Services in Colorado
NetPEO can speak with you about workers’ compensation needs and recommend the right PEO for your business. To get a free quote from PEOs who can help you with workers’ compensation services, call us at the number on your screen.
We’ll listen to your needs and go through our list of PEOs to see which ones can provide you with workers’ compensation services. NetPEO has over 30 years of experience helping businesses across the country solve their payroll and HR problems, and we have one of the highest satisfaction rates in the PEO broker industry.
Get your free, no-obligation quote by calling today.