Pressure Wash News Summer

The Importance of
Having a Spotter
YOUR PEO’S ROLE: Your PEO will take on
given that in recent times as many as 40 mil-
on. As such, this also means no more pain-
have access to a whole human resources de-
specific employer obligations, which you can
lion Americans filed unemployment claims.
ful audits at the end of the year based on
partment for any questions you might have
choose. You give the PEO the power to han-
SUTA is only paid on the first $7,000 wages
your policy payroll estimation versus the
about employee issues and/or needed legal
dle crucial administrative tasks like payroll,
per employee. This is not as big of a factor
actual performance and end of year pay-
advice. They can get you the documents
tax withholding, and providing benefits to
for a one- or two-employee business. How-
roll amounts. (That’s right: no more of the
needed to satisfy any PPP loan requirements,
your workers. Your PEO can also act as your
ever, increased costs can really add up once
insurance company asking for a lump sum
as well as return-to-work offer letters to help
agent in employee disputes, unemployment
you have more than five employees on your
check for the difference and no more audits
get your employee’s back to work.
claims, workers comp claims and more.
payroll.
of your books!)
Other headaches like needing safety
Being able to utilize a consistent SUTA
Plus, you have an opportunity for work-
manuals for your business to satisfy new in-
THE PRESSURE
IS ON
With a halt to the economy, business owners
were faced with having the uncomfortable
discussion with employees regarding
layoffs, furloughs, and terminations. It hurt.
These employees can be like family. Some
have been long-time employees that have
assisted in your company’s growth.
Unemployment rates are a contributing
factor to raised costs on business owners,
whether you had to implement layoffs or
not. How will this affect you? With a dramatic
increase in unemployment claims paid
out, the claims must be recouped in some
way. That is done through FUTA (Federal
Unemployment Tax Act) and SUTA (State
Unemployment Tax Act) -- funds that you
pay in to on all payroll! These funds are used
to pay out unemployment benefits to unemployed
workers.
When there are a lot of claims (as
there are presently), it affects everyone via
increases in SUTA rates. FUTA rates are
locked at .60%, whereas SUTA rates vary
from state to state based on the number of
unemployment claims.
Again, how can a PEO help? Since this
is considered a co-employment relationship
between you and the PEO, you get the benefits
of the economies of scale.
If you had employees claiming unemployment,
you will be subject to increases in
your personal SUTA rate; whereas, within
the PEO relationship, you are locked in at
the SUTA rate that you originally set.
Increases are likely to be administered,
rate regardless of market conditions or
changes can really save you money and help
with added cash flow. Keep in mind, if you
have had any unemployment claims, they
most likely can provide you a lower rate
RAMPING
BACK UP
Just a few short months ago, our economy
was growing in what seemed like exponential
leaps and bounds. Workloads were up,
unemployment was at an all-time low, and
the stock market was booming.
Businesses like yours were hiring more
employees and growing their businesses to
the next level, perhaps for the first time.
Getting back to that level sooner than later
can be hastened by removing additional
headaches that you dread doing and do not
always have the time for, such as payroll
processing, payroll tax filings, HR issues,
and work comp audits – none of which directly
impact sales and revenue.
The co-employment relationship allows
for you to leave those tasks to be handled by
a team assigned to represent your business.
This means you can focus on marketing, bids,
hiring/firing, and managing your employees.
A PEO relationship also helps with
money management. It provides you the required
worker’s compensation insurance you
need as required by vendors or job bids, as
well as the state. They do this on a pay-asyou-go
premium basis and not an estimation
that you will be held accountable for.
This helps with cash flow tremendously,
since the actual hours that are worked
is what you pay worker’s compensation
er’s comp savings as well by using a broker
to navigate the space on your behalf. PEO’s
can provide discounts to worker’s comp
rates because you are in a co-employment
relationship and thereby utilizing their experience
mod rating. (If you know experience
mods, you know that this can be a
big deal depending on your claims history.)
The opportunity for time and cost savings
paired with efficiency can help you relieve
some serious tension, allowing you to stay
focused on growth.
TAKING CARE
OF BUSINESS
How you deal with employee personnel issues
is a huge factor in building a company
culture and a positive workplace environment.
It pays dividends in the form of employee
retention and the overall quality of
work performed day in and day out.
Current events and circumstances have
raised so many questions about how to do
the right thing for your employees while also
protecting your business. Do we furlough?
Do we terminate? Do we permanently lay
off? It can be overwhelming. We were not
provided a playbook or owner’s manual for
how to deal with a pandemic!
Understanding the EIDL loans, Payroll
Protection Program (PPP) loans, and howto
bring employees back to work efficiently
are tasks that can be made more understandable
and easier by having a team of
trusted advisors. This includes a good insurance
broker, a good accountant, a good
bank, and a good HR team.
Included in a PEO relationship, you
surance requirements can also be handled
by a PEO and lead to even more cost savings
for your business.
PARTING
ADVICE
I work with clients across many different
industries, including pressure washing. I
have been blessed to have great discussions
with many of them recently to empathize
and work together to help each other out
through this time of unknowns.
I’ve recently touched base with all of
them to ask about the specific situations
that they are facing and to try to figure out
how I could be of assistance. Whether it
was as simple as providing a breakdown of
the economic relief loan verbiage, or pointing
them in a direction on how to acquire
them, I felt I was able to make a sizeable
difference in each instance.
I was also able to realize that not all industries
are doomed as the media likes to
portray. There will be opportunities that
come out of this downturn. Those who
have a good mindset, focus, and good team
surrounding them can negotiate this rocky
terrain to climb even higher toward their
version of success. Exterior cleaning services
is certainly an industry primed for
growth going forward.
My prayer is that your families and
businesses are surviving and that you see
this as a time to apply even more “pressure”
to your business success than before.
“Tighten the nozzle” and grow out of this
experience stronger than ever. The opportunity
is there.
6 | PRESSURE WASH NEWS | VOL. 2, NO. 3 | SUMMER 2020