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Insurance Brokers vs. Payroll Service Bureaus – Weighing your Options

When it comes to employee benefits, few will argue that insurance is among the most important.  Health insurance is normally one of the top two benefits employees name as the most important one, and most companies that are serious about their employees offer some form of insurance option to them.  And workers comp is an absolute must.  But today, there has been an interesting shift and most are finding that they have a choice of insurance brokers vs. payroll service bureaus when setting up their insurance plan.  Both have advantages and disadvantages, and when looking at insurance brokers vs. payroll service bureaus it's important to review all of the different options. 

The decision of insurance brokers vs. payroll service bureaus isn't one you'll make lightly, and it deserves very careful consideration.  One thing to look at in the battle between insurance brokers vs. payroll service bureaus is the fact that over three million employees are already being paid through PEOs, or Professional Employment Organizations.  And those payroll organizations are starting to offer very real insurance solutions, usually in the form of pay as you go workers comp insurance.  Knowing this makes it easier to compare insurance brokers vs. payroll service bureaus.

  • When looking at the decision between insurance brokers vs. payroll service bureaus, you'll need to figure out just what type of insurance you want to offer to your employees.  Insurance brokers will be able to offer you all types of plans, but in many cases payroll services will only offer limited options.
  • However, those options could be perfect for your company, which is why the current battle of insurance brokers vs. payroll service bureaus still exists.  The pay as you go workers comp option is the main reason that payroll services actually seem to have a leg up when considering insurance brokers vs. payroll service bureaus. 
  • Basically, pay as you go will require no big deposits or upfront costs, and will usually have easier to use payment plans than other options.

 

  • However, when looking at the differences between insurance brokers vs. payroll service bureaus you'll likely see that insurance brokers may offer more carriers.
  • Another thing to look at when choosing between insurance brokers vs. payroll service bureaus is the fact that payroll service bureaus that already handle your payroll will make it much easier to set up your insurance, to track it, and to ensure that you're paying the right amount.  When you link a couple of different policies together, you'll see benefits of time, efficiency, and cost.

Taking a closer look at the differences between insurance brokers vs. payroll service bureaus will help you figure out just what you need to choose.  Compare rates and policies, and figuring out your best option will be an easy matter.   


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