I think you might be somewhat biased in your assessment.
While agree that Applied does have fees that preclude it from being a perfect fit for all clients, I have seen it allow some clients to not only save some money but also time. This saving of time has allowed clients to focus on their business and make money. It’s the same reason we hire housekeepers to clean our homes, it allows us more time to make money.
With that said, it is a better fit for higher rate classes (will not work for clerical class codes) and small/mid-sized businesses, you have to understand the product both the pros and the cons.
Is Applied Underwriters an employee leasing company? The additional fees could be for payroll taxes that agents like yourselves do not often see.
I represent several firms that provide Employee Leasing Services and thier pricing for the payroll part of the process is usally on 2 or 3% of payroll. I do run into agents that fail to see that another 10 to 12% of the cost of an employee leasing company is made up of mandatory taxes such as Social Security as well as state and federal unemployment taxes.
For the record I am not an employee of AU, not have I ever been one.
Now that we have that cleared up, the AU product is a pretty solid one. I think the trick, like all of insurance is matching clients with carriers. Your generalization of points, is not entirely accurate, as I recall, there is an option for larger accounts that uses an annual fixed fee for service.
One thing that is often overlooked, but caught easily be integrated products like AU’s, is the hourly wage issues. For the business there is the overtime issue, that integrated products automatically catch and for the insurer the employer can\’t pretend to be paying a higher rate wage that they really are (with the integrated products that issue is pretty clear and there is not a lot of debate on the issue of “fraud\”).
Additionally, I would never recommend that a client or agent/broker steer clear of AU, but I would encourage them to become educated about the product. As a matter of fact, I believe Berkshire recently bought them or has been affiliated with them and I personally expect good things from them in the future.
Applied Unerwriters a.k.a. “American Employers Group” operates as an employee leasing company without informing their clients that they will operate in this fashion and they collect more payroll taxes than the government mandates the client pay. Applied Underwriters collects payroll taxes in the name of the state and federal government and pockets the extra after the amounts cap out and thir response is that “it’s in the contract.” This is Fraud.
I’ll post anonymously since I have worked for AU since being purchased by Berkshire.
Applied Underwriters is, at best, a solid solution for small businesses lacking an employee/department with payroll knowledge. That being said, if you’re anything more than a four-man roofing outfit, it would probably be best to take your business elsewhere.
AU can help small employers float between pay periods, but beyond that, their services and approach are a huge negative. They’re aggressive and employee no single certified accountant within their payroll department, so many times, an employer can get away with not paying proper overtime or pay rates. If AU actually detects the error, they only cover themselves and inform the client of the illegality, but do not make any attempt to report it. Since they have no certified accountants, this is completely legal. Shady, but legal.
But, should you do so, and become a hassle? AU will report you so fast, it will make your bottom-line spin. That, and they’ll come after you so fast for what they’re owed, you won’t know what hit you.
I am a reconstructive and plastic surgeon who has been trying for 5+ months to be paid by Allied on a Worker’s Comp claim, for a rather severe injury, I am looking for anyone , MDs, pharmacies, past adjusters or employees who can validate my suspicions that they systematically avoid payment , perhaps to the point of criminal fraud.
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I think you might be somewhat biased in your assessment.
While agree that Applied does have fees that preclude it from being a perfect fit for all clients, I have seen it allow some clients to not only save some money but also time. This saving of time has allowed clients to focus on their business and make money. It’s the same reason we hire housekeepers to clean our homes, it allows us more time to make money.
With that said, it is a better fit for higher rate classes (will not work for clerical class codes) and small/mid-sized businesses, you have to understand the product both the pros and the cons.
I look forward to competing against you.
Is Applied Underwriters an employee leasing company? The additional fees could be for payroll taxes that agents like yourselves do not often see.
I represent several firms that provide Employee Leasing Services and thier pricing for the payroll part of the process is usally on 2 or 3% of payroll. I do run into agents that fail to see that another 10 to 12% of the cost of an employee leasing company is made up of mandatory taxes such as Social Security as well as state and federal unemployment taxes.
Thanks for the information, I operate out of South Florida as an employee leasing company broker so I have no knowledge about Applied.
If I have a client with CA operations I will steer clear of Applied based on your comments.
Mike
For the record I am not an employee of AU, not have I ever been one.
Now that we have that cleared up, the AU product is a pretty solid one. I think the trick, like all of insurance is matching clients with carriers. Your generalization of points, is not entirely accurate, as I recall, there is an option for larger accounts that uses an annual fixed fee for service.
One thing that is often overlooked, but caught easily be integrated products like AU’s, is the hourly wage issues. For the business there is the overtime issue, that integrated products automatically catch and for the insurer the employer can\’t pretend to be paying a higher rate wage that they really are (with the integrated products that issue is pretty clear and there is not a lot of debate on the issue of “fraud\”).
Additionally, I would never recommend that a client or agent/broker steer clear of AU, but I would encourage them to become educated about the product. As a matter of fact, I believe Berkshire recently bought them or has been affiliated with them and I personally expect good things from them in the future.
What does this have to do with the FRAUD article?
You\’re rigth Bill!!
Inter-cross line relations as for all possibilities and concepts as it relates to free speech. Please respond accordingly and defend as needed.
Applied Unerwriters a.k.a. “American Employers Group” operates as an employee leasing company without informing their clients that they will operate in this fashion and they collect more payroll taxes than the government mandates the client pay. Applied Underwriters collects payroll taxes in the name of the state and federal government and pockets the extra after the amounts cap out and thir response is that “it’s in the contract.” This is Fraud.
I’ll post anonymously since I have worked for AU since being purchased by Berkshire.
Applied Underwriters is, at best, a solid solution for small businesses lacking an employee/department with payroll knowledge. That being said, if you’re anything more than a four-man roofing outfit, it would probably be best to take your business elsewhere.
AU can help small employers float between pay periods, but beyond that, their services and approach are a huge negative. They’re aggressive and employee no single certified accountant within their payroll department, so many times, an employer can get away with not paying proper overtime or pay rates. If AU actually detects the error, they only cover themselves and inform the client of the illegality, but do not make any attempt to report it. Since they have no certified accountants, this is completely legal. Shady, but legal.
But, should you do so, and become a hassle? AU will report you so fast, it will make your bottom-line spin. That, and they’ll come after you so fast for what they’re owed, you won’t know what hit you.
I am a reconstructive and plastic surgeon who has been trying for 5+ months to be paid by Allied on a Worker’s Comp claim, for a rather severe injury, I am looking for anyone , MDs, pharmacies, past adjusters or employees who can validate my suspicions that they systematically avoid payment , perhaps to the point of criminal fraud.