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New PEO proposal for Nevada Chamber of Commerce

Posted on April 28th, 2011 Read time: 1 minutes

The Northern Nevada Chamber of Commerce will tentatively introduce a newly created Professional Employer Organization to act as its employer of record, notes Northern Nevada Business Weekly.

The news source adds that a series of meetings last week between the NNCC and its potential PEO, Applied Chamber Solutions, discussed the proposal.

Jim Annis, president and chief executive of The Applied Companies, explains to the news source that participants are usually drawn to PEOs because of the improved healthcare benefits and lower healthcare costs.

The new initiative is expected to be enacted in late 2011 or early 2012, with ACS hoping to sign on companies representing 1,000 to 1,500 employees.

"The insurance world is about large numbers," Annis told the news source. "A company always is going to get a better deal on health insurance if it participates in a large group."

Employ HR points out that the average annual cost of regulation, paperwork and tax compliance for companies with fewer than 500 employees is about $5,000 per employee. For companies with more than 500 employees, the cost drops to about $3,400 per employee.

The U.S. Bureau of Labor Statistics has predicted that half of American employees will be will employed by a PEO by 2020, the news source adds.  

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