A PEO for a roofing 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.

Roofing presents severe fall exposure, and NCCI scope 5551 applies to many roofing operations in states where that national code is used. Carrier and PEO appetite varies, so obtain a written underwriting indication based on states, heights, work type, subcontractors, loss runs, and fall-protection controls before comparing price.

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 investigating only with PEOs and carriers that explicitly underwrite the roofing operations and states shown in the submission. A PEO does not erase loss history. Compare its terms with the voluntary and residual markets available in the state while investing in fall protection and claims control.

What a roofing contractor should ask every PEO

• Some PEOs and carriers decline roofing, so confirm underwriting appetite before spending time on benefits, software, and contract review.
• OSHA fall protection compliance (training records, equipment inspection logs, site documentation) is both a safety necessity and the main lever on insurability.
• Crew payment practices in the industry (per-square piece rates, day rates) create overtime calculation errors that are expensive to unwind under the FLSA.
• Storm work concentrates revenue and hiring into short windows, with out-of-state crews and per-diem questions arriving at the same time.

Workers compensation insurability is usually the first issue to resolve. Once the operations are accepted, compare medical plan terms against the benefits used to recruit experienced foremen.

Common questions

Which PEOs will even take a roofing company?

Ask every candidate how many class 5551 clients the contracting entity serves and in which states, then submit complete loss runs and safety information for a written indication. Do not schedule benefits and software work until underwriting identifies the covered operations, exclusions, carrier, deposit, rate basis, and required controls.

Do piece rates work inside a PEO payroll system?

Piece-rate pay is legal under the FLSA, but overtime must still be calculated on the regular rate derived from piecework earnings, and some states add their own rules. Ask the PEO to process a sample two-week piece-rate payroll with overtime before signing and verify every calculation field.

Different team size?