PEO PRICING CONCEPTS
JR & Associates represents PEO's with several different pricing models.

Most PEO's create a factor and bundle all employee related costs (FICA, FUTA, SUTA, WORK COMP, and ADMIN) into a bundled factor for each work comp class code to make payroll and other services simple and predicable for the employer.  These factors will either stay constant using mathematical estimates for SUTA and FUTA cut-off's, or they will reduce as wage base limits are met for SUTA and FUTA tax.  This is known as an unbundled factor

A third pricing model involves a "real time" factor for taxes and work comp, plus a per employee fee per pay cycle or month. Known as a fee-based factor

Example of Employer related costs (per $100 of payroll):

 Work Comp Codes >>
8810
Clerical
3632
Machine Shop
5645
Construction
Social Security/Medicare 07.65% 07.65% 07.65%
Federal Unemployment 00.80% 00.80% 00.80%
State Unemployment 03.25% 03.25% 03.25%
Workers' Compensation 00.40% 04.15% 12.50%
Administrative Overhead 04.00% 04.00% 04.00%
Total Cost per $100.00 16.10% 19.85% 28.20%

* Notes
- State Unemployment Tax rates vary significantly by state and due to employer experience.
- The Small Business Administration estimates that administrative overhead for business with less than
100 employees ranges from 4% - 8%. 
- Total cost is estimated and may very by employer.

Examples of Pricing Structures by PEO's:

1. Bundled Factor Example

 Work Comp Codes >>
8810
Clerical
3632
Machine Shop
5645
Construction
  PEO Cost 14.21% 17.63% 24.95%

*Note

- The factor stays constant throughout the year.

- Turnover cost is pre-determined and calculated in the factor.

2. Unbundled Factor Example

 Work Comp Codes >>
8810
Clerical
3632
Machine Shop
5645
Construction
  PEO Cost- pre cut-off
(w/SUTA/FUTA TAX)
15.94% 19.70% 26.88%
  PEO Cost- post cut-off
(no SUTA/FUTA TAX)
11.89% 15.65% 22.83%

*Note

- The factor shifts with Federal and State Unemployment Tax.

PEOs may have additional fees for group benefits such as health or 401(k) implementation.  They may also have fees for delivery or client set-up.