Paying your workers’ compensation insurance policy may not be something you’ve considered closely, but it can have a substantial impact on your business’s cash flow.
Typically, employers make two or three installment payments on their workers’ comp insurance policy each year. These large premium payments can be disruptive to cash flow, especially for seasonally based businesses, and they aren’t accurately calculated.
Under this model for workers’ compensation insurance, the payments you make are based on estimated employee wages. This can easily result in over- or underpayments, particularly if your staff has grown or hours have been contracted. You may very well be paying an additional bill at the close of the policy year, or getting a refund—and you’ll only find out after payroll is audited by the insurance company to determine the actual workers’ comp premium amount owed. The whole process can be likened to the income tax collection process: large, estimated payments throughout the year, with a final reconciliation when the policy year is over.
You don’t need to guess with your money. You can improve your cash flow, minimize year-end surprises, and spend smarter with our Workers’ Comp Pay-As-You-Go service. Under this model, you make workers’ compensation payments based on actual employee wages—not estimated ones. Pay-As-You-Go ties workers’ compensation premium installments directly to the total wages of each payroll. This virtually eliminates over- or underpayments.
With Workers’ Comp Pay-As-You-Go, we work with your insurance carrier to help you manage the premium payments, while we manage your payroll.