Commercial HVAC Contractor

Overview

Our client is a Commercial HVAC Contractor with approximately 230 employees based in Texas. Prior to contacting Solid Business Solutions, our client managed payroll processing and tax compliance through a national payroll provider, had limited or no human resources support, had one broker handling workers' compensation and another broker handling employee benefits. Key Issue #1: the client was contacted by their broker handling workers' compensation and told their Experience Modification Rate (EMR) would be changing from a 0.98 to a 1.18 within 60 days at time of renewal based on past workers' compensation claims and the client would see a 20% increase in workers' compensation costs equal to a premium increase of over $150,000 per year. Key Issue #2: The client performs a large percentage of work under federal contracts and was concerned the new EMR would impact current and future federal contract opportunities.

Our Solution

After initial consultation with our client and reviewing the client's workers' compensation claim history, Solid Business Solutions determined the EMR change was the result of a "shock loss" and could be easily remedied with comprehensive risk and safety management. Solid Business Solutions recommended moving the client to our PEO solution before the workers' compensation effective/renewal date allowing our client to lock in and retain their current EMR before the new EMR became effective. In addition, our PEO Solution would give our client a single point of contact for payroll and tax compliance, human resources, workers' compensation and employee benefits giving our client and key staff more time to focus on risk and safety management and other core activities for their organization.

Solutions Implemented: PEO Solution

The Result

Today, our client enjoys an annual savings of approximately $150,000 in workers' compensation premium. Our client has access to a team of experts managing payroll and tax compliance, human resources compliance, workers' compensation and employee benefits giving our client more time to focus on running and growing their business. As part of the transition to Solid Business Solutions, our client was able to move two employees previously focused on employment related activities and responsibilities to risk and safety management allowing them to implement ongoing OSHA training and general safety meetings providing a safer work environment for their employees and minimizing risks which would result in workers' compensation claims.

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