Whether you have ten employees or a thousand, workers’ compensation is a vital part of running a business. Yet, the associated costs can put a squeeze on your finances. Workers’ compensation pay-as-you-go programs offer a unique alternative that can help you manage your premiums while still protecting your business and employees.
Save Your Resources for Other Operating Costs
Traditionally, you have to budget to pay your workers’ compensation premium in one large amount upfront. This can lead to cash-flow shortages while you scramble to fill in the gaps for that month.
Alternatively, pay-as-you-go doesn’t require a lump-sum premium. Instead, you pay a portion of your premium each time you complete your payroll. This frees up your resources so that you can focus on important budget items and operating costs.
Remove the Guesswork and Year-End Confusion
In the past, workers’ compensation insurance depended on estimates to decide the amount you had to pay for your premium. At the end of the year, you had to perform an audit to discover if you had underpaid or overpaid.
Workers’ compensation pay-as-you-go eliminates the risks of under or overestimating your workforce and your needs. With your premium payment tied to your payroll, it can adjust to the realities of your workforce throughout the year.
As a business owner, you understand the importance of workers’ comp. The structure of pay-as-you-go helps you make critical financial decisions without risking the safety and operations of your business.