Pay as you go workers comp is the simple concept of paying your workers comp insurance via a payroll service.

Traditional Work Comp Insurer’s bill your premium by estimating your annual payroll at the beginning of the policy period. At the end of the policy year they send in an independent auditor to reconcile the actual payroll. If you underestimated the annual payroll the Works Compensation Carrier will send you a bill which is typically a surprise additional Premium bill; which no business owner likes. If you over estimated the payroll the insurance company will send you back the overpaid premium within 30 days; in this case the insurer held on to your valuable working capital which would have been better used in your bank account.

Pay as you go allows a payroll service to calculate the workers comp premium each pay period to the penny, no estimations or guesses. The payroll vendor runs your payroll and sends the carrier the premium every pay cycle, the same way they send in your taxes. This eliminates audit bills for underpaying premium and return of premium from over estimating your payroll. You will have the peace of mind that your premium is sent with each payroll, no worry of cancellation for nonpayment and no sweating over a large bill at the end of the policy year.

Enforce coverage Group has several Flex pay programs with many payroll vendors. Give us a call to see how your workers Comp insurance can be placed in a Pay as you Go Program.