Pay As You Go Workers Compensation Insurance

Sometimes business owners feel trapped by their payroll company because it manages both payroll and workers’ compensation. Payroll companies like ADP and Paychex only work with national insurance companies so their options can be limited. We work with lots of other great payroll services and our coverage is portable.

• Pay As You Go workers’ compensation enables business owners to carry workers comp with little or no money down.
• More than ever, small businesses need real solutions to help them reduce the cost of insurance coverage and improve business cash flow.
• We’re the national leader in Pay As You Go coverage with more insurance partners than any other agency.
• Ohio-based businesses must obtained workers’ compensation coverage through the Ohio Bureau of Workers’ Compensation — but we do offer ADP’s Pay-by-Pay service to Ohio clients.
• Our exclusive Pay As You Go programs also help protect employers against large audit bills because premium payments are based on real-time payroll wages and reporting.

Workers’ compensation insurance cost varies based on the business size, its location, its industry and its specific claims history. Also, workers’ comp rates and requirements vary from state to state. In general, for every $100,000 in payroll, the average workers’ compensation policy ranges from a few hundred dollars to a few thousand dollars per year. At Paychex, our Workers’ Compensation Payment Service can reduce or eliminate large end-of-year payments by basing your premiums on actual wages, not estimates.

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Someone who got hurt last month, cannot make a work comp claim if they were just hired last week. Carriers also like the fact that this makes it difficult for insured clients to intentionally misclassify the work comp codes of the jobs being performed.

We make sure your employees are assigned the correct class codes and provide you with your “Net Billing Rates” for each class code applicable to your business. Net Billing Rates are typically different than the manual rates. Net rates combine all policy credits and debits into the “actual” rate per charged class code. Pay-As-You-Go work comp integrates work comp premium payment with a companies payroll. For companies with limited HR and employee benefits needs, an integrated payroll and work comp solution can be a simple, cost effective solution. With a pay-as-you-go payroll service, your company is billed for workers compensation insurance premium that is calculated on each payroll cycle. While that has long been a standard practice of using a PEO, using a PEO has traditionally required the client to use the workers compensation policy of the PEO.

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That’s because the premiums on your workers’ compensation and other types of small business insurance policies are based on this information. The insurer will use the information you provide to determine whether your premium needs to be adjusted — up or down.

Premium amounts are precisely calculated on each payroll for the exact amount owed. No more estimates of payroll and no more end-of-year audits and associated surprise expenses. Each time a client runs payroll with ADP, the premiums for their workers’ compensation policy are calculated and forwarded directly to the insurance carrier. The bigger the premium, the bigger the advantage of Pay As You Go insurance. Rather than guessing the annual payroll for business insurance, pay-as-you-go uses your real-time payroll calculations to bill for coverage. You make more accurate workers comp payments which reduces the chance of over-paying for coverage throughout the year.

Most businesses qualify for Pay As You Go coverage with one or more of our insurance companies. Typically, businesses with at least two employees and an annual premium greater than $750.00 are eligible for one or mre of our programs. As the national leader in Pay As You Go work comp, we’re appointed with over 45 insurance carriers. Currently, more than 15 of our partners offer Pay As You Go payment options. The Pay-As-You-Go work comp model assigns workers comp codes for each worker and automatically bills your company for only the coverage your company needs – during the time you need it.

Workers’ Comp

Many of the nations’ top workers’ compensation insurance carriers are moving aggressively to partner with payroll service providers and ASO companies. In order to keep their clients they are offering Pay-As-You-Go work comp coverage that duplicates the way PEOs have done it for years. The Pay-As-You-Go model eliminates the overhead associated with end of year audits and inhering inaccuracy of estimating premiums. In addition, carriers have realized that work comp fraud is a significant problem and cost to their bottom line. Pay-As-You-Go ensures the carrier that they cannot hit for medical expenses for anyone who was not on the payroll.

If set up on this program, my client would have the WC premium EFT’d from their bank account after the payroll for the previous pay period was submitted. The reporting would be done by the payroll company and ideally would not create any additional work for my client. When your insurer conducts a premium audit, it will ask you for payroll, employee and/or sales and tax records related to your business.

More than ever, small businesses need real solutions to help them reduce the cost of insurance coverage and improve business cash flow. Pay As You Go workers’ compensation enables business owners to carry workers comp with little or no money down. Our exclusive Pay As You Go programs also help protect employers against large audit bills because premium payments are based on real-time payroll wages and reporting. We’re the national leader in Pay As You Go coverage with more insurance partners than any other agency. Compare rate from over a dozen Pay As You Go insurance companies.

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That can help protect you from audit exposure, because your premium is based on real-time payroll wages, not an estimate. Plus, spreading these costs out over the year, versus an up-front payment, helps your business manageworkers’ compensation insurancecosts. I hope everyone is enjoying some 3rd quarter success! I wanted to ask for feedback regarding some carriers’ new “Pay As You Go” Work Comp products. I work in the small business department of our agency and have been apporached by at least 2 carriers who have two different products that are “pay as you go”.

Many businesses prefer to combine Pay As You Go workers’ compensation with their payroll and tax administration services. That’s why we partner with payroll service companies across the county. We offer easy access to the most affordable Pay As You Go workers’ comp companies. Our process is easy to integrate with most payroll service companies for the ultimate ease and convenience. Our agency offers exclusive Pay As You Go insurance programs that make it easier and faster than ever to qualify for one of our Pay As You Go plans.

We provide direct Pay As You Go options for employers and we also partner with payroll service bureaus across the country. We’ve been the national leader in Pay by pay workers’ compensation since 2005. With pay-as-you-go, your premium payments are based on your actual payroll, not projected annual payroll.

What if you want to use your own workers’ comp policy but still for work comp with each payroll period? That is where a pay-as-you-go payroll solution may be a better option.

This was typically followed by monthly installments for the next 6 months. A business would have paid their entire premium during the first 7 months of coverage.

Ohio-based businesses must obtained workers’ compensation coverage through the Ohio Bureau of Workers’ Compensation — but we do offer ADP’s Pay-by-Pay service to Ohio clients. This benefit enables the insured to have their premiums calculated on actual payroll runs. ADPIA then remits those premium payments to the Ohio BWC.

Pay As You Go workers’ comp insurance is becoming more popular with business owners because it help take the guess work out of estimating your annual payroll. Just a few years ago, a business could only get workers’ compensation coverage the old fashion way. Employers would have to estimated their annual payroll and then puy 25% down as their workers’ comp premium deposit.