A PEO for an HVAC contractor with 25 employees

What pricing looks like at 25 employees

At 25 employees, small differences in a per-employee fee compound into a material annual amount, and benefit participation can support more meaningful plan comparisons. Normalize percentage pricing to PEPM using actual payroll and compare the plan designs as well as premiums.

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

A complete census, loss information, and a documented request for proposal can create useful competition. Ask each finalist to model state unemployment and workers compensation explicitly and to state how benefits renewal notice works.

When a PEO is the wrong answer at this size

If an experienced internal operator already manages HR, benefits, payroll, and compliance, a PEO may duplicate part of that role. Compare the PEO with an ASO or payroll platform while keeping the existing insurance and internal expertise.

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?