PEO Pricing Randy Wadle, CEO. Agenda Session Objectives Review pricing functionality that is not...

PEO Pricing Randy Wadle, CEO

AgendaBasic 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• 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• 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: 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 Fields

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