You may have noticed that the term “Employer of Record” has been popping up more frequently among employers and providers of talent, and it can be confusing to figure out exactly what the term means in comparison to the services provided by the more traditional “staffing agency” or “payroll vendor.” The traditional definition of Employer of Record is:
a company or organization that is legally responsible for paying employees, including dealing with employee taxes, benefits, insurance, etc.
That defines the basic service, but a good Employer of Record is much more than just someone you hand your payroll duties off to. Partnering with an Employer of Record (EOR) is a smart business decision that creates a layer of protection for your business – mitigating common risks such as worker’s compensation and claim management issues that a company can inherit as it grows larger.
Identifying Hidden Risks
When a company makes a business decision to utilize contingent workers and independent contractors to manage the fluctuations in their workforce needs, they run the risk of these workers being incorrectly categorized by hiring managers and supervisors during the on-boarding process. That means any worker’s compensation claims or workplace injuries that may occur during the worker’s employment can cause OSHA and DOL audits and inspections, monetary risk due to increased worker’s compensation insurance premiums across your enterprise and also bad PR for the company. These type of audits, inspections and insurance issues can take several years to clear up, and if you run into multiple violations you begin to see why it is prudent to partner with a professional Employer of Record who will help mitigate the risk to your organization and provide guidance relative to contractor management.
How TalentBurst Can Help
TalentBurst is now one of the leading Employer’s of Record in the US and Canada and is an expert in providing Fortune 1000, mid-sized and start-up businesses with compliant and efficient Employer of Record Services. We handle every part of contingent worker management, which means you can focus on running your business smoothly with a solid labor platform supporting you.
At TalentBurst, we are fortunate to be able to work with companies that have recognized the risks that lie within their business. We help clients not only in the United States but also companies that require contractor compliance in international locations such as Canada, UK, Germany, France and India. If you would like to know more about how an Employer of Record can help your company mitigate risk and save money, please reach out to us.
If you are a company or an enterprise with a large worker population – you may have small pockets of workers that are putting your company at large financial risk.
How can you identify these possible landmines, and what can you do about them? In an exclusive talk given by our CEO — Brad Talwar lays out a roadmap to avoid those mines and keep your company’s risks minimized.
Click the video below to see Brad’s talk about High-Risk / High-Hazard Payroll services. We’ve also included a transcript below.
Hi everyone, my name is Brad Talwar I’m founder and CEO of Talentburst and I’m here today to talk about the High-Hazard Payroll Industry.
If your Head of Procurement, VP or Head of Talent Acquisition or Human Resources in a Fortune 1000 or Fortune 500 company, the first thing you have to ask yourself is:
“Is your enterprise at risk from a worker’s compensation standpoint?”
Do you have worker populations within your organization that can be injured? Do you have workers that are working within a lab environment, or a supply chain, or a warehouse? Or if there’s any kind of assembly line, furnaces, speciality chemicals, possibly toxic chemicals, toxic wastes, acids? -Do they have any exposure to blood in a lab environment, exposure to animals, handling animals, or exposure to blood borne pathogens?
These are the questions you should be asking yourself because if the answer is yes then your enterprise or Fortune 1000 company is definitely at risk.
The High-Hazard Payroll industry is a very niche industry. What happens typically in this industry is that there is always a small worker population that is often hidden within your entire enterprise. If this worker population is exposed to any of these hazards such as blood-borne pathogens or toxic chemicals, there will be worker’s compensation claims. Those claims can amount to thousand of dollars, hundreds of thousands of dollars or millions of dollars in certain cases.
In that event, your going to get buried with claims and have to deal with insurance companies that sometimes may not approve those claims. In which case you can have OSHA or The Department of Labor auditing or working closely with you to pay out those claims that can be very, very large.
I’ve worked in this space for the last 10 years, and it’s riddled with land mines. My first and most important suggestion to you is to look at your entire worker population, work with the heads of different departments, maybe supply chains, maybe assembly lines, maybe labs – if you can identify those worker populations then the first thing you need to do is make sure they are properly coded on your insurance policy and endorsed on your policy with the right NCCI codes.
The NCCI is the National Council for Compensation Insurance. You should work closely with them, and if your not working closely with them there are several 3rd party companies that can recommend what different codes should be endorsed on your worker’s compensation policy.
If you aren’t working with a 3rd party coding agency, you may want to look at a company that specializes in High-Hazard Payroll or High-Risk Payroll that actually do this for a living and work with you and hold your hand through the process.
The next landmine that a lot of people get stuck in is the claims process. You really do need to make sure that you have a documented claims process, right from intake through processing through resolution. If that’s not done, your Mod rating on your insurance is going to skyrocket. That is something your CFO or CEO of your company is not going to like—especially if you are publicly traded.
The mod rating is going to impact your insurance premium for your entire enterprise. So if you have 10,000 workers, 50,000 workers, or 100,00 workers – that premium is going to be applicable to the entire enterprise.
Once again, you really should lean on a 3rd party claims resolution company or a High-Hazard Payroll company that has worked with the claims processing right form the get to, from start to finish.
Another landmine in this piece of the industry is if some 1099 workers are claiming Worker’s Compensation insurance or file for a claim with your company or with your insurance carrier – that can be another huge problem because they shouldn’t be filing for a claim on your policy because they are 1099 – which can lead to further issues of correct or incorrect classifications of 1099. And then these misclassifications are typically triggers for audits with the Department of Labor and OSHA.
Most of these pockets of workers that are going to be risky are hidden within your high-speed assembly lines, people that typically handle pressurized gasses, toxic chemicals, or work in some kind of healthcare or lab environment. Look within these sectors and groups, and you’ll see if your enterprise is at risk.
Want to talk to the experts about High Risk / High Hazard Payroll? TalentBurst is the leader in the industry. Contact us today!
You may be aware that TalentBurst is one of the few leading companies that offers High-Risk Payroll as one of their services, but you wouldn’t be alone if you weren’t completely sure what the service is or how it works.
TalentBurst’s Founder and CEO sat down with Jim Coughlin at the VMSA Network to give a brief overview of what High-Risk / High Hazard Payroll is and how it works.
And if you stick around until the end, you’ll find out the one person Brad would love to have dinner with.
Unable to watch the video right now? No problem – we’ve included a quick summary below:
TalentBurst’s High-Risk / High-Hazard payroll service exists for enterprises that deal with environments that have a higher risk of workplace accidents. This can range from warehouses that deal with toxic chemicals to laboratories that work with blood-borne pathogens. Workplace accidents that occur in these types of facilities can create a larger problem for the company as well as the employee if they are not correctly setup. That’s where TalentBurst comes in.
TalentBurst takes on the payroll for the company and incorporates a 3-step process to ensure that any accidents that may take place don’t adversely affect the company, and more importantly the employee is taken care of quickly and with the best possible care.
- Step 1: TalentBurst works closely with the enterprise to correctly code every worker under TalentBurst’s insurance. Without the right NCCI codes, an insurance company can deny a claim.
- Step 2: A fully-documented claim intake process. In the case of a workplace injury, a full-investigation is completed within 24 hours to ensure that all the proper documentation is handed over to the insurance company. TalentBurst then ensures the employee receives short and longterm care if necessary.
- Step 3: After a claim has been closed, TalentBurst assists in further training the client and their employees on future prevention and safety. Training is provided and a comprehensive plan is put in place to avoid further injuries and incidents.
Want to know more about High Hazard / High Risk Payroll? We’ve got answers to all your questions. Contact us today!