A PEO for an HVAC contractor with 10 employees

What pricing looks like at 10 employees

At ten employees, the fixed base charge is spread across more workers, but benefits participation and employer-contribution rules can materially change the quote. Require the provider to show which employees are eligible, who must enroll, and how waivers affect pricing.

HVAC work includes ladder falls, lifting injuries, driving exposure, and refrigerant handling. The quote should itemize workers compensation by class and explain claims handling, safety support, and return-to-work procedures.

Your leverage

Use the same census for several PEOs and for a broker-sourced benefits alternative. Require administration, benefits, workers compensation, taxes, and incidental fees to be shown separately so a favorable insurance line does not hide an expensive service fee.

When a PEO is the wrong answer at this size

A contractor-heavy or part-time workforce may receive limited value from PEO benefits while still generating administrative charges. Confirm how each worker is treated before comparing the PEO with payroll software or an ASO.

Worth pricing when the company needs pay-as-you-go workers compensation, claims support, and reliable trade payroll. Underwriting still reflects duties, states, loss runs, and safety controls, and a PEO does not repair the underlying claim record.

What an HVAC contractor should ask every PEO

• A single lost-time claim can push an experience mod above 1.0 and make the company uncompetitive on jobs that require a mod under 1.0 to bid.
• Techs are paid hourly with overtime, spiffs, and on-call pay, creating several inputs that payroll and wage-and-hour reviews must handle correctly.
• Seasonal hiring swings mean headcount can double in summer, and every new tech needs comp coverage from day one.
• Certified payroll and prevailing wage requirements apply on public and commercial jobs.

Price the health option for the actual technician census, but keep workers compensation separate in the comparison. Request the deposit, audit method, class-code payroll, rate, claims service, and pay-as-you-go terms rather than assuming the PEO structure improves them.

Common questions

Will a PEO lower my workers comp rate?

Only the quotes can answer that. Compare the PEO program with the current policy and at least one direct-market alternative using the same class-code payroll and loss runs. Include deposits, audits, fees, experience-rating treatment, and exit access to claims history, not only the displayed rate.

What happens to my experience mod inside a PEO?

It depends on the state, policy structure, rating-bureau rules, and experience-reporting arrangement. Ask the carrier or rating bureau which entity’s experience modification applies, how your losses are reported during the relationship, and which loss runs and experience records you receive at exit.

Different team size?