PEO Pricing
Randy Wadle, CEO
Agenda
Basic Pricing Configuration
Contract Types
Surcharges
Sales Entities / Commission
Renewal Pricing
Session Objectives
• Review pricing functionality that is not frequently
used but very useful and powerful
• We will NOT be reviewing the standard PEO/ASO
pricing or Benefits Pricing
• We’ll be moving fast…primary focus is exposure,
not training
• Mostly PowerPoint
Pricing Configuration
FUTA Credit Reduction
• FUTA Credit Reduction
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State Level FUTA Tax Adjustments
Defined on State Master
Defaulted onto the Pricing State
Can be added to the standard FUTA (.6) on proposal
outputs
FUTA Credit Reduction
Minimum Admin Fees
• Default Admin Fee form
• Per Account (validation)
• Per Head (validation &
default on Pricing Batch for
payroll setup
• Discount threshold
minimums also validated
• Rules in place to insure
minimums are met,
discount thresholds and
default admin form, before
submission
Discount Thresholds
• Work Comp Premium
Discount
• Minimum Admin Per
Head/Account
• Max SUTA discount (off
base bill rate
• Gross Profit discount
allowed
• Only used in Target GP
admin method
Work Comp Pricing & Profit
• Work Comp Mod Method
• Set on Default Information form
• Use Premium Discount Table: pulls discount
based on manual premium
• Use Client’s Mod: pull from
PricingBatch.ClientExperienceMod
• From Pricing Batch: pull from
PricingBatch.BillingClientModifier
• Profit Calculation Method
• Set on WC Policy form
• Use Policy Cost: Profit =
PricingCode.NetCompRate –
RateSheet.FundingRate
• Use Client ELR: Profit =
PricingCode.NetCompRate –
(RateSheet.FundingRate +
PricingBatch.ClientELR
• Pricing Batch Client ELR defaults from Policy
Pricing State
• SUTA Cutoff Override
• Adjust the state cutoff
• Pricing Policy vs
Coverage Policy
• Client Modifier vs
Premium Discount to
adjust pricing
Pricing Code
• Work Comp Exempt
Wages
• Override the
NetCompRate
• Using “Turnover” for
more accurate SUTA
profit
Contract Types
Contract Type Effect on Pricing
• Default at Client Master but
carried on Pricing Batch
• Locked on CM after submit
• Pricing specific for business
model
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Admin fees
Work comp discounts
Underwriting approvals
Metadata
• Work comp model
• Legal Entity selection
• Use Client SUTA
Contract Type Effect on Workflow
• Template Task Contract Type criteria
• Use “AND” groups to join conditions
Contract Type Effect on Header Links
• Header Links (Reports, Action, Dataform Links)
compound condition
• Use “Condition Expression to join conditions
Surcharges
Surcharge Type Record Layout
Surcharge Type Configuration
Surcharge Type Fields
• Surcharge Type: identifier for the surcharge
• Surcharge Code: unique code for the
surcharge type. Can be used in Excel
lookups
• Surcharge Group: reporting only
• Recurring: One time or a recurring surcharge
• Minimum Bill Rate: rule validates that users
cannot charge lower than minimum
• Default Bill Rate: defaults to this fee when
the surcharge record is created
• Include in Profit: if checked, surcharge
records of this type are included in profit
calc
• Cost for profitability: if used in profit calc,
the cost is pulled from this field
• Per EE/Frequency: if checked, the surcharge
is charge for each EE
• Commissionable: if checked, any users with
surcharge commissions will get paid on this
revenue
• Hide in Quick Select: used for surcharge
dependencies to suppress bundled items
• Is Clone: if checked, surcharge records are
created
Surcharge Type Bundles
• Use Surcharge Type Dependencies to create
surcharge bundles when adding to workspace
Sales Entities /
Commissions
Types of Sales Entity
• Internal Sales: users that
work for the PEO and are
members of the sales
department
• Broker: organization
records that are
Category=Broker
• Referral Partner: same as
broker
• Agent: contact that works
for a broker or partner
Multi Year Commissions
• Commission Timelines
• To setup different schedules as a deal
ages
• For example, John Doe gets 20% of
admin for first year of deal, 10% for
second year, 0% after second year
•
This could be done on one
commission record
• Expiring Commission records
• To setup different commission
schedules as the salesperson tenure
increases
• For example, John Doe earns 10% of
admin for deals he sells in first year,
15% for deals in the second year, and
20% in third year.
•
This would require 3 separate
commission records
Sales Entity Defaults
• Admin Fees
• Overrides the Default
Admin Fee setting
• Per Head
• Per Account
• Sales Coordinator
• Will update the Client
Team form
• Contract Type
• Will override the default
contract type from the
Default Info
Renewal Pricing
Renewal Pricing Overview
• ClientSpace is designed to be starting point for updates
to pricing data (admin, taxes, comp, other insurance)
• Most PEOs reprice annually unless circumstances
require an advanced schedule
• The new Pricing Console (Pricing Batch, State, Code)
will be pushed through the configured Renewal
Underwriting process
• When the new Pricing Console is activated, the
previous pricing information will be expired
• Pricing History is maintained in ClientSpace
Clone the Pricing Batch
• When pricing is approved,
no user is able to edit
pricing; even global admins
• Cloning the pricing batch
will create a new set of
pricing records that can be
edited
• The Pricing Batch (and
related Pricing States and
Codes) will be pushed
through the Renewal
Underwriting workflow
Clone the Pricing Batch
• Optionally use New WC
Rates or New SUTA Rates
• If no checked, the rates
will be cloned directly
from the existing batch
• After clone, there are two
pricing sets
• The “new” renewal
pricing is editable
Renewal Underwriting
• Workflow action links
on the Pricing Batch,
not the Client Master
• Alternate Renewal
Underwriting workflow
• When the new batch
gets activated, the old
batch is archived