Pay as you go workers compensation is the newest trend in financing workers compensation. The traditional model requires an employer to forecast payroll for the next twelve months, pay a minimum 20% 30% down payment, in some cases incur finance charges for monthly installments, then reconcile the actual payroll to the projection through an audit after the 12 months end. If the initial projection was below actual payroll, the employer is billed the difference; if the projection was high, the overcharged premium is returned to the employer. A monolithic approach for a different time.
Today, employers want specificity; they want to know the true cost of labor; they want to be nimble and flexible; they want their insurance partners to be immediately responsive to changing business demands.
The solution is EZPay workers compensation, a turn-key solution designed to integrate workers compensation payments with your payroll service provider. This program provides these benefits:
Ties expenses more closely to revenues, eliminating cash-flow surprises after a growth payroll year
Payments are made electronically through ACH, meaning no checks, installment fees or late notices
Provides the employer with a choice of insurance carriers
Employer may use virtually any payroll provider (talk to us about options if you are looking for better service or lower costs)
Agent expertise and advice is still available for valuable experience management
If you are an employer, you have to have workers compensation insurance. Why finance it by paying based on estimates, then reconciling expenses in a different fiscal year? Talk to us about our EZPay workers compensation program.
If you need assistance with preparing for the annual workers comp audit, click HERE for an informative video and/or a visual guide on what's needed to prepare.