As many businesses look to cut costs and reduce spending during an economic downturn, corporate benefits are often amongst the first to go. However, the ability to offer a competitive benefit plan to employees has never been more valuable. For small to medium-sized businesses, a certified Professional Employer Organization (PEO) is the number one solution.
Danny Nessim, founder and CEO of A&C Management Group is the leading insurance and PEO broker in New York. With more than 15 years of experience in the field and an unrivaled network at his disposal, Nessim and his team at A&C have become small to medium business’s top choice for reducing costs while retaining the same caliber of benefits their employees have come to expect.
PEO plans allow smaller businesses to access the same benefit plans and rates that large Fortune 500 companies have access to by combining them with a group of other small businesses. These benefits typically include health insurance, dental, vision, life insurance, short term and long term disability, 401k plans and FSA (Flexible Spending Accounts).
According to Danny Nessim there are three distinct advantages to transitioning your companies benefits structure to a PEO plan.
First, a PEO plan benefits both parties. The employer can pay a lower rate and the employee will be able to access the same, or in many cases, even better benefits. Furthermore, the employee will not have to increase their contribution.
Next, a PEO plan allows small businesses to focus on revenue generating activities while allowing the PEO to operate as a back of house office. The PEO is a full service solution, from HR services, compliance, benefit administration and payroll, they manage these important administrative tasks so business can focus on other areas. This dedication to compliance is one of the greatest benefits of utilizing a PEO. Now more than ever, the state is going after small businesses and fining them for the smallest non-compliance issues. A PEO plan will not only do all they can to ensure the company is compliant, they will handle the legal issues if a business is found to be non-compliant.
“This alone alleviates massive pressure off of a small business,” Nessim says.
Lastly, PEO plans allow for greater variety in plan selection. Most corporate benefit plans are not one size fits all, but many company’s policies only allow them to offer one plan, which usually leaves an entire age demographic entirely underserved.
“A 30 year old may not want or need the same plan as their 60 year old coworker,” explains Nessim.
With a PEO plan, businesses can offer 5-6 unique plans ranging in coverage that meets all of their employee’s needs.
As the nation’s economic future continues to remain uncertain, transitioning to a PEO plan is the number one way for small to medium businesses to cut costs, and stay afloat. Danny Nessim and A&C Management is the obvious choice when considering transitioning to a PEO. To learn more about his cost saving services, visit https://acmgmt.com/.