Many Payroll and Outsourced HR service firms can assist SME’s, small and midsized employers to obtain group health insurance and ancillary benefits. The level of administration, support and type of employee benefits coverage will depend on the ASO or Offsite HR provider you select.
Most service Level II ASO, HRO and Professional Employer Organizations can provide the administration, processing and reconciliation of your premium payments, employee deductions, and streamline the enrollment process. Virtual Payroll and HR companies will handle the processing of employee enrollments and terminations, as well as COBRA notification and recordkeeping. Higher service Level III PEOs and HR vendors will include electronic enrollment for fast, easy and error free on-boarding, as well as employee self service systems that put workers in control of their benefits.
SME’s, small and midsized companies can obtain “Fortune 500” large group major medical coverage under a “master group health plan” offered by an Employee Leasing company or Professional Employer Organization. A “staff leasing” or “co-employment” agreement enables employees of small growing companies to receive lower cost health and dental coverage at large group rates by joining with hundreds or thousands of other small businesses.
It is very important to understand your payroll or HR partner’s relationship with their employee benefits vendor. Most utilize 3rd party small group insurance brokers or maintain an internal benefits brokerage department to service their payroll clients. If better benefits and lower cost is your reason for choosing an HR provider. Check with PEO-Quote.com about your Offsite HR selection before making a benefits decision.