7 Reasons More Companies don’t know about or use section 479 plans.
Is your small or medium-sized business becoming too hard to manage on the employee side? It’s one thing to run a growing business. It’s another thing to hire, manage, and maintain a healthy and happy workforce, but it’s pretty hard to grow your business without one.
SBE479 Plans give HR and C-Suite support to small and mid-size businesses. These kinds of services gobble up your time and money, and smaller companies just don’t have the resources to do it well. This includes things like tax compliance, payroll, benefits, ACA, things that cause employee Lawsuits, Government audits, and other HR and Technology related services.
Businesses that use an SBE479 Plan have been shown to grow faster, retain more employees, and are less likely to go out of business.
But if that’s true, why do so many companies try to do it the hard way – on their own?
Here are 7 reasons your company might not use a SBE479 Plan:
1. Insurance agents keep you in the dark
Insurance agents get paid an amazing amount of commissions – between $300 and $700 for each of your employees every year. If you switched to an SBE479 Plan they would lose most or all of that income. So if you ask your agent about an SBE479 Plan, what do you think they’ll say? Sure use them and fire me?
Plus, SBE479 Plans do things insurance agents often don’t even know about – it’s way out of their myopic world of deductibles and self-insurance. They often have no idea about benefit administration systems that connect to all your other systems – a huge time-saver and just one more reason to get an SBE479 Plan.
2. HR managers worry about being replaced
Many HR managers fear that a SBE479 Plan will take away their tasks and make their jobs obsolete. The good news is, the opposite is actually true. A good SBE479 Plan empowers your HR department to run better and spend their time on more valuable aspects of your business, such as improving your recruiting and retention procedures.
Plus, there is no way your HR director can keep up with all the regulations a small business faces. The constant changes are just overwhelming. Having another company to help, and to be liable if there is a mistake, relieves you of a major job stressor.
3. Co-employment: A scary-sounding word
SBE479 Plans can do all this because of the concept of co-employment. “Co-employment” doesn’t mean you lose control of your company or your employees – but it kind of sounds that way. Co-employment isn’t about giving anything up through some weird sleight of hand. It’s about sharing liabilities. SBE479 Plans operate based on a federal law specifically designed for them. Here’s how co-employment works:
Your business shares the E.I.N. of a large group of small companies like yours. Because of this, you bypass all the regulations about small “groups” from insurance companies. It may sound scary like they now run your company and your employees, but the law is really clear on what this ‘sharing of tax IDs’ is about.
The best benefit regarding your employees is that if they get hurt or sue you – whether it’s a baseless lawsuit or a legitimate one – they are suing the entire EIN. Your SBE479 Plan handles this and is liable for it – so they make sure you have systems in place that protect both you and them. And if for some reason you decide you don’t like your SBE479 Plan, you can fire them.
4. It’s complicated
Explaining what an SBE479 Plan does isn’t the easiest task. Their real value is a complicated bundle of services and behind-the-scenes benefits. It’s not just a great price saving on health insurance and worker’s compensation, though it has that too. The software, compliance, and other services simplify and strengthen the foundations of small and medium-sized businesses.
5. You think everything’s fine the way it is
Small employers and their HR directors often have no idea about the real liabilities they face from new regulations and audits. There’s just too much stuff coming down from all the levels of government (city, county, state, federal) that makes it harder for your business to prosper. If you knew what you don’t know, you would be up all night and your spouse would make you close the business.
6. Poor salesmanship
Most of the salespeople that explain this Federal Act and its power are so terrible at explaining what it does. Seriously. The industry is full of ex-insurance agents who couldn’t sell, and now they’re trying to sell a complicated mixture of services.
Presenting SBE479 Plans is something only a well-trained consultant, someone in HR, or a former businessperson can do in such a way that companies can clearly see and understand how it helps them. Yes, the industry cannot sell its own great value most of the time.
7. Opposition from all fronts – and you just might not qualify
Even if you see the value and want to join or buy into a SBE479 Plan, it’s still possible you may not qualify. Different SBE479 Plans operate under various buying group umbrella rules. These can include things like specializing in certain industries, location, and a dozen other things.
You’ll also get opposition from all kinds of Salespeople – the ones who stand to lose out if you join a SBE479 Plan. And they will try to talk you out of it. For instance:
- Your health insurance agent (who would make less or lose the business)
- Your workers comp broker
- Your 401k administrator (SBE479 Plans do all the admin on this – and you still keep the investments you want)
- Your payroll company
- Your HR consultant
- Any of the many other vendors you have to deal with who aren’t integrated in any way.
- Even your own HR department or payroll manager might try to talk you out of it (perhaps for some of the other reasons on this list).
And remember, even if you ignore all that opposition, you might still be turned down by the SBE479 Plan for various reasons. But have no fear – there is a good SBE479 Plan that will take you. They all have niches and specialities.
The question is, how do find them and how much time will it cost you to hunt them down? The best way is to call a company that does all this stuff for you.
SBE479.org is the premier educational organization for small business that determines whether it is worth your time to explore in the first place, which SBE479 Plan is best for you, help negotiate the best deals for you and follow up to make sure you are being served properly. Our volume with these large Certified SBE479 Plan’s gets you the best service, prices and guarantees.
Call us at 888-8THEPEO (888-884-3736) to set up an appointment with your PEO-OLOGIST.