|
Home » What is PEO » Save with a PEO
|
|
Business owners save valuable time and hard cash when hiring a PEO. Each client situation differs. Tandem HR representatives are available to review your business and human resource needs to determine exactly where we can save your business time and money.
Two Tandem clients show the financial difference our PEO has made for their business:
Example #1:
Stock Trading Firm
15 Lives, $450,000 annual payroll
In this instance, the client saved 25% in health care costs, which allowed it to offer pre-tax plans and a 401(k) to its staff. The Management Fee listed in the "Before PEO" column represents the client's calculation of costs associated with these functions before hiring the PEO.
Bottom line: this company improved its employee benefits, gave up the headaches, and saves about $10,000 annually.
| COSTS |
BEFORE PEO |
AFTER PEO |
| |
| Health Insurance Annual |
$40,000 |
$30,000 |
| Dental Insurance Annual |
$6,500 |
$5,400 |
| Workers' Comp Annual |
$1,250 |
$700 |
| Employer FICA |
$34,425 |
$34,425 |
| Employer SUTA |
$4,185 |
$4,185 |
| Employer FUTA |
$840 |
$840 |
| Pre-Tax Plans |
NO |
YES |
| 401(k) |
NO |
YES |
| Management Fee |
$16,000 |
$18,000 |
| Total Annual Cost |
$103,200 |
$93,550 |
|
|
Example #2:
Trophy Manufacturer
70 Lives, $2,100,000 annual payroll
In this case, the company's cash outlay is roughly the same, but all of the administration associated with payroll, benefits, risk management, unemployment, and workers' comp are now handled by Tandem.
| COSTS |
BEFORE PEO |
AFTER PEO |
| |
| Health Insurance Annual |
$190,000 |
$156,000 |
| Dental Insurance Annual |
$30,000 |
$25,200 |
| Workers' Comp Annual |
$15,000 |
$9,000 |
| Employer FICA |
$160,650 |
$160,650 |
| Employer SUTA |
$15,750 |
$15,750 |
| Employer FUTA |
$3,920 |
$3,920 |
| Pre-Tax Plans |
NO |
YES |
| 401(k) |
$3,000 |
YES, $0 |
| Management Fee |
$40,000 |
$84,000 |
| Total Annual Cost |
$458,320 |
$454,520 |
|
|
|
|

No upcoming event found

Click on the date for Events
| | Sun | Mon | Tue | Wed | Thu | Fri | Sat |
|---|
| 29 | 30 | 31 | 1 | 2 | 3 | 4 | | 5 | 6 | 7 | 8 | 9 | 10 | 11 | | 12 | 13 | 14 | 15 | 16 | 17 | 18 | | 19 | 20 | 21 | 22 | 23 | 24 | 25 | | 26 | 27 | 28 | 29 | 30 | 1 | 2 | | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
|
|
|