How Brand’s “Pay-As-You-Go” Workers Compensation Insurance Can Save You Time and Money

Pay-as-you-go worker’s compensation insurance is quickly becoming the preferred way to pay for your worker’s comp insurance. Some of the largest benefits of switching to Pay-As-You-Go are avoiding up-front down payments or deposits and outdated payment methods.

For a more accurate calculation of workers’ comp premiums, pay-as-you-go uses real-time payroll information rather than simply estimating it by job descriptions.

This means that you’ll be far less likely to under or overpay for your policy. Typically, businesses underestimate their payrolls, which results in often large and unplanned additional audit premiums due at the end of the policy term (right at the time your next year’s deposit is due) and can cause a cash flow crunch.

To simplify it all, Pay-As-You-Go worker’s compensation is an alternative to avoid the deposit and make your premium payments based on your actual payroll data collected every time you run payroll. How is this done? Insurance carriers have recognized that if they receive your payroll data and premiums based on your actual payroll data on a regular basis, your premiums are more accurate and therefore they have waived their typical deposit requirements.

But how does your payroll data and premiums get to the insurance company? Well, Brand’s uses a custom and secure “insuretech” platform with more than 450payroll companies, payroll software companies along with our nationally recognized insurance company partners. This allows our clients a simple and easy way to purchase, monitor and pay for worker’s compensation insurance.

Pay-As-You-Go is not a different type of insurance, and it doesn’t replace your workers’ compensation insurance or your responsibility to pay premiums, collect/issue certificates of insurance from subcontractors, etc. Your coverage must still be provided through a state-approved worker’s compensation insurance carriers or an approved self-insured source. The difference is efficiency and cash flow.

To learn how Brand’s Pay-As-You-Go worker’s comp can help your company eliminate your normal deposits, reduce your audit exposure and simplify the purchasing process, contact us at cs@brandspaycheck.com.

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