The Secret to Saving on California Workers' Compensation Insurance

California business owners continue to feel the pressure from not only a poor economy - but now an increase in state workers' compensation insurance rates. A recent California Department of Insurance analysis of the top 100 workers' compensation insurers in California found that of 59 companies that filed a notice with the state indicating they intend to change rates, 42 filed for rate increases of between 0.6 percent and 12 percent, for an overall average hike of 4.1 percent.As California annually tops the nations list of highest work comp rates, business owners are rapidly discovering employee leasing services, also known as professional employer organizations - or PEOs. These services have been around for almost 30 years but have seen the most dramatic growth in the last decade as employers have grown more accustom to outsourcing unproductive and non-revenue generating work. Employee leasing services were designed to help businesses reduce employee related costs by outsourcing the administrative work involved with having employees.Consider the time spent on payroll - and not just plugging in the hours and spitting out checks. Office supply trips for checks, ink cartridges and updated software. How about quarterly and year-end reports, W2's, wage garnishments and payroll tax deposits just to name a few?What about the frustrations of dealing with insurances, like workers' compensation, general liability - or maybe the worst - group health insurance? Audits, claims management and questions along with yearly increases - then shopping for potentially better rates, is a colossal waste of time for someone whose skills can be used for driving profit - back to the business.An employee leasing company allows to you combine these unproductive areas of your business and save money on insurance costs - all for less than you could do on your own! With a master work comp policy that pools your business with hundreds of others, you'll receive huge discounts (up to 40%) compared to California state fund rates. You can also get started with little to no money down, on a pay as you go program that's easy to use and you'll never be audited.The concept was simple and makes sense when you consider this. You started a business to sell a product or a service and hopefully generate a lot of revenue. Then you quickly discover the administrative side of running a business and having employees. You soon realize the amount of time wasted dealing with employee related paperwork and management issues, taking you away from what your real expertise is.This isn't a new theory or something made up by PEOs to sell more services. The Small Business Administration reports that business owners can spend up to forty percent of their time consumed with employee related administrative work. And the Department of Labor reports that by the year 2020, more than half of all Americans will be co-employed through an employee leasing service.There's never been a better time to investigate the benefits a leasing company may have on your business. Reducing overhead costs without decreasing your services and giving you more time to focus through these difficult times, may just be your business life saver.