If you’re a New York contractor who does most of your work under wrap-up projects (OCIPs or CCIPs), you already know the nightmare that comes with your workers’ compensation insurance audit. You spend months sending proof after proof to show that your payroll should be excluded because the general contractor’s policy covers your workers’ comp. Yet somehow, the audit always drags on — or ends with you overpaying.
There’s a smarter, simpler way: move your workers’ compensation and payroll to a Professional Employer Organization (PEO). Below are ten major ways doing this can benefit your business — financially, operationally, and mentally.
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1. End the Audit Headache
PEOs manage workers’ compensation audits for you. Because they handle payroll and workers’ comp under their own federal employer identification number (FEIN), you’re no longer the one being audited. That means no more gathering payroll reports, job lists, certificates of insurance, and OCIP documentation every year. The PEO takes care of it all.
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2. No More Double Charging for Wrap-Up Work
One of the biggest problems with traditional insurance audits is that they often don’t properly exclude wrap-up (OCIP/CCIP) payrolls. Even when you prove that your employees were covered by the GC’s policy, those payrolls can still show up in your premium calculation until you fight it out.
With a PEO, your payroll is managed in real time, and wrap-up exclusions are applied automatically — ensuring accurate, fair billing from the start.
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3. Stable, Predictable Premiums
Traditional workers’ comp policies fluctuate based on estimates, classifications, and claims. PEOs offer flat, predictable pricing based on your actual payroll each pay period. You’ll know exactly what you’re paying — no surprise bills at year-end.
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4. Lower Workers’ Comp Costs
Most PEOs have master workers’ comp policies with top-rated carriers. Because they pool many employers under one large policy, they negotiate lower rates than a single contractor could get alone. The savings can be substantial — especially if your payroll varies throughout the year.
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5. Compliance Made Easy
PEOs stay on top of New York’s complex labor and workers’ compensation regulations. They make sure your business complies with all wage, reporting, and coverage requirements — reducing your risk of penalties or cancellations.
6. Pay-As-You-Go Premiums
Instead of paying large upfront deposits or estimated premiums, PEOs use pay-as-you-go billing. Premiums are calculated on actual payroll every pay period, which improves cash flow and eliminates big audit adjustments.
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7. Professional Payroll & HR Support
When you join a PEO, you’re not just getting insurance — you’re getting an entire support team. PEOs handle payroll processing, tax filing, new-hire reporting, and even HR compliance. That means you can focus on managing jobs instead of chasing paperwork.
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8. Better Coverage Options
Many PEOs offer access to large-group employee benefits — including health, dental, vision, and 401(k) plans. Small and mid-sized contractors often can’t get these benefits on their own, but through a PEO, you can attract and retain skilled labor more easily.
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9. Improved Safety and Risk Management
PEOs employ safety experts who can help you develop safety manuals, training programs, and jobsite inspections. This proactive approach lowers claim frequency, improves your safety record, and helps reduce long-term costs.
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10. Peace of Mind and Time Savings
Imagine not having to deal with audit disputes or endless proof-of-coverage requests every year. With a PEO, everything is streamlined — one invoice, accurate payrolls, and professionals managing compliance behind the scenes. That peace of mind is worth its weight in gold.
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Why More New York Contractors Are Making the Switch
For contractors who do mostly wrap-up work, the PEO model is a no-brainer. You avoid being double-charged for payroll already covered under OCIP/CCIP, eliminate audit battles, and gain expert HR and payroll support.
You’ll have more time to focus on growing your business instead of managing your insurance company.
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How BGES Group Can Help
At BGES Group, we specialize in helping New York contractors find smarter, more efficient workers’ compensation solutions — including the right PEOs for construction. We’ll review your policy, wrap-up exposure, and payroll structure to determine how much you can save and simplify your operations.
Our team has over 44 years of experience helping contractors throughout New York, New Jersey, and Connecticut lower costs and eliminate audit headaches.
Contact BGES Group today:
📞 Gary Wallach – 914-806-5853
Stop overpaying and overworking for your insurance company. Let BGES Group show you how the right PEO can make your workers’ comp simple, affordable, and stress-free.