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Your PEO renewal went up. Now what?

A renewal increase isn't the end of the conversation. Here's how to figure out where it came from, what can be negotiated, and when it's worth comparing other PEOs.

Find out what actually went up

A PEO renewal usually combines several costs. Look at each one on its own:

• Health premiums. Often the biggest piece, driven by carrier rate changes and the makeup of your group.
• Admin fee. The PEO's own charge, per employee or as a percent of payroll.
• Workers' comp. Rates by class code, plus your experience mod if you have one.
• State unemployment (SUTA). Rates can change year to year.
• New fees. Technology, compliance or service fees that weren't there last year.

What's usually negotiable

• Admin fees are often the most flexible part, especially when the PEO knows you have other quotes.
• Plan design can lower premiums without dropping coverage: a different plan tier, a change to the employer contribution, or adding a lower-cost option next to the current plan.
• Workers' comp can come down if employees are in the wrong class code or your safety record has improved.

Get competing quotes before you sign

The strongest position at renewal is a real alternative. Competing quotes either show you a better option or give you leverage to negotiate with your current PEO. Either way, you decide with numbers instead of guessing.

What you'll need

• Your renewal notice.
• A recent PEO invoice.
• An employee census, for health quotes.
• Workers' comp class codes and payroll by class.
• Loss runs, if you have them.

You can send all of it through the secure upload. Files are encrypted in transit and at rest, and only Raenan can open them.

Timing

Start 90 to 120 days before your renewal date when you can. If your renewal is closer than that, it's still worth asking. Quotes can move quickly once the paperwork is ready.