Is Pay-As-You-Go Workers’ Compensation Right For Your Business?
Workers’ compensation insurance is designed to cover employers and companies in the event that employees become injured or ill due to their work activities. It covers the employee regardless of fault, meaning the illness or injury could be caused by the employer’s actions, the worker’s actions, or even a customer or contractor’s actions and the expenses would still be covered under the insurance.
The federal government oversees and administrates workers’ compensation insurance, but each state dictates its own regulations and programs governing coverage. For example, states can require coverage for companies with a certain number of employees or in a specific type of work, such as construction, manufacturing, or transportation. Failure to adhere to your state’s workers’ compensation laws not only results in government-levied fines, but can also place the financial responsibility for a worker’s injuries or illness squarely on your shoulders.
SourceOne Partners can help you find a Pay-As-You-Go workers’ compensation insurance program. Through this program, you pay workers’ compensation insurance premiums according to your current payroll, the class of jobs workers are in, your claims records, and your state’s specific laws regarding coverage requirements and premiums. Here are reasons why your business should consider Pay-As-You-Go workers’ compensation.
No Guesstimating What Payroll Will Look Like Next Year
Without Pay-As-You-Go, you essentially must guess what payroll will look like up to a year in advance. For most companies, it’s difficult or impossible to make this estimate accurately. Additionally, costs for workers’ compensation insurance is on the rise this year, meaning that even if you know for sure how many employees you are required to insure, you might incorrectly estimate how much the insurance premiums will cost for the year.
With Pay-As-You-Go, workers’ compensation insurance payments are calculated along with the regular payroll processing and paid as those payments are made, which means there is no guesswork involved. You always pay what you’re supposed to, when you’re supposed to, with no huge lump sum payments at the beginning or end of your policy period.
No Fears of Audit Surprises with Pay-As-You-Go Workers’ Comp
Using Pay-As-You-Go, your premiums are always accurately based on what your payroll figures stand at currently. This eliminates or almost eliminates large down payments or big installment payments, freeing up your cash flow for other business operations. You never get a surprise payment at the end of your policy period, and there is no need to be concerned over a state audit of your workers’ compensation insurance. Additionally, you never face overpaying for this insurance, so your funds are free for other investments throughout the year.
Are you ready to stop the guesswork and audit worries over your workers’ compensation insurance policy? Contact SourceOne Partners today for a full set of PEO features including Pay-As-You-Go workers’ compensation insurance plans, human resources and payroll services, employee benefits solutions, and much more. You can learn more at the SourceOne Partners website. You can also find valuable resources here, including actionable ways to reduce the amount of money it takes to cover your workers with required insurance. Contact us online or call 561-674-0748 to speak with a workers’ comp expert today.