ABCO Payroll Services®

By Roger Reynolds

January is going to be confusing for employee leasing companies and their clients. Employee leasing companies are going to have a number of decisions to make. Among those decisions are the questions of reducing workers' comp rates and raising SUTA rates.

Workers' comp rates are going down 18.6% January 2009. However, because of the recent Florida Supreme Court decision regarding fees for attorneys representing injured employees, rates are expected to go up March 1st on new, renewal and outstanding policies. If you were an employee leasing company, what would you do? Reduce the workers' comp rates in January and then raise them in March, or not change the rates until March?

Without a doubt, with the number of businesses which have gone out of business or reduced their workforce, the state unemployment tax rate employee leasing companies pay is going up. What would you do if you ran an employee leasing company? Raise the rates? Keep the rates the same?

Thus the opportunity!! Now is the time to solicit your clients which are with employee leasing companies. You'll be able to show them savings on administration fees and most likely their workers' comp rate if you use a January effective date. It's unlikely that the leasing companies are ready to commit to a January rate for their services.

Good luck!!