New York Pay As You Go Workers Comp

Ed WinslowUpdates

Increase Cash Flow and Eliminate Audit Head Aches

In this economy the phrase “cash is king” has never rang so true. With banks tight on lending , bills and insurance premiums rising a small business with cash flow will survive.  For small business owners subscribing to a PAY AS You Go Workers Comp program is a great way to control cash flow.

Pay As You Go workers comp is a very simple concept. Since Workers Comp premiums in NY are determined by payroll the most efficient way to pay the premium is through a payroll service. This is how it workers: they payroll service calculates the normal payroll, employee and employer match taxes, prints checks and the reports a small business needs to manage their bank account. On a per pay period basis the Payroll service would also calculate the workers comp premium by employee for that pay period. And just like payroll taxes they would deduct the workers comp premium and remit it to the carrier.

The benefit is the elimination of a nasty audit bill. Traditional Workers Comp policies are based on Estimated payroll. Therefore a business doesn’t know it’s true workers comp premium until the end of the policy year. Pay as you go allows the business to pay their Comp every pay period to the penny. Therefore not over paying the Workers Comp and not underpaying.

If you would like more information on Pay as You go Workers Comp programs in NY State Contact us.