A PEO for an HVAC contractor with 50 employees

What pricing looks like at 50 employees

A business around 50 employees should calculate whether it is an Affordable Care Act applicable large employer using the federal full-time and full-time-equivalent rules. Ask who prepares required reporting, but do not assume the PEO changes the client’s underlying status or responsibility.

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 a structured request for proposal. Request transparent administration, benefit premiums by tier, workers compensation rates by class code, tax treatment by state, implementation resources, and contract terms. A larger annual commitment supports a more detailed review.

When a PEO is the wrong answer at this size

If direct benefits and workers compensation are competitive and the company has strong internal HR ownership, an ASO or payroll platform may preserve more control. Model implementation and future exit costs on both paths.

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?