Depending on the state in which you employ workers, you may have to have a workers compensation policy with the first employee you hire.
EasyWComp is a “Pay-as-you-go” (PAYG) workers’ compensation insurance that offers several advantages over traditional policies for businesses. Here is how PAYG is better:
- Accurate Premiums Based on Actual Payroll. PAYG policies calculate premiums based on actual payroll data. Traditional policies often estimate premiums at the beginning of the policy term, and adjustments are made later based on annual audits. PAYG reduces the differences these audits produce by providing more accurate premium calculations from the start.
- Cash Flow Benefits: With normal workers compensation policies, there is a large down payment due at the beginning of the calendar year. With PAYG since premiums are calculated and paid with each payroll, there is no large down payment. This can be particularly beneficial for seasonal businesses or those with fluctuating workforces, as payments align with actual payroll expenses.
- Adjustments for Workforce Changes: PAYG policies can easily accommodate changes in your workforce. Whether you’re hiring more employees or scaling down, the premiums adjust in real-time based on actual payroll. This flexibility is particularly advantageous for businesses with variable staffing needs or those experiencing growth or a reduction in employees.
- Minimized Audit Exposure: Workers compensation policies involve annual audits to reconcile estimated premiums with actual payroll data. PAYG policies minimize the risk of audit surprises by continuously adjusting premiums throughout the policy term based on real payroll figures. This reduces the likelihood of underpayment or overpayment.
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- Error Reduction: Payroll systems integrated with PAYG workers compensation policies help eliminate errors in premium calculations. Unless an employee is classified incorrectly for the work they are doing, any audit adjustments at the end of the year should be very minimal.
Corporate Payroll Services in combination with multiple insurance carriers has been providing PAYG workers compensation to its customers for over 15 years. Please contact us for a free quote.
