What Is Workers' Comp "Pay-as-You-Go?"
Pay-as-you-go workers’ compensation insurance is increasing in popularity in the business world. Eliminating upfront costs and outdated payment methods are two of the biggest reasons businesses are turning to pay-as-you-go for workers’ comp insurance. Compared to an estimated annual payroll amount, pay-as-you go relies on real-time payroll to calculate workers’ comp premiums, resulting in more accurate premium payments. This means it’s less likely you’ll pay too much throughout the year – or have a premium* adjustment at the end of the policy term due to under-reported payroll. Find out more about workers’ compensation insurance
How Does Pay-As-You-Go Workers’ Compensation Work?
With pay-as-you-go, you work with your existing payroll service provider and/or tax administrator to pay a single bill each pay period. This way, you’re combining your workers’ comp premium with your payroll in one easy bill.
Difference Between Pay-as-You-Go and Traditional Workers’ Comp Insurance
Pay-as-you-go workers comp is simply another way of making your premium payments. It’s not different insurance, and it doesn’t replace your workers’ comp insurance or your responsibility to pay premiums, collect/issue certificates of insurance from subcontractors, etc. Your coverage must still be provided through a state-approved workers’ comp insurance
carrier or approved self-insured source.
Advantages of Pay-As-You-Go Workers’ Compensation
How To Get Pay-as-You-Go Workers' Comp Insurance
Not all insurance companies offer pay-as-you-go workers’ comp, and not all payroll providers will support this option. Contact your current insurance provider and payroll bureau to find out if pay-as-you-go is available to you.
Última actualización: 10 de julio de 2023
* Most carriers require a premium audit for workers’ compensation policies.
Divulgaciones adicionales a continuación.