As an employer, it is your responsibility to take care of the needs of your workers and address important issues quickly. These issues gave rise to a new law and new insurance: workers’ compensation insurance. This insurance helps many employers protect their employees from on the job accidents and injuries. Workers compensation insurance has been extremely helpful to the work force. The recent development of pay as you go workers comp helps employers like never before.
Pay as you go workers comp is a relatively new field, but one that benefits the business owner better than the regular traiditional way. Earlier, business owners had to put in an estimate of the annual payroll and then pay the installment to the insurance company in tenures according to the plan. With pay as you go, business owners no more need to put in the annual estimate. Now, it can be done in a real-time basis. The down payment and quarterly installment of the traditional workers compensation insurance is no more in the pay as you go model.
Pay as you go workers comp is a must-have for every business owner. In case you don’t have it yet, here are some reasons you should totally get one.
- Cash Flow: Pay as you go workers comp helps you a lot with cash flow. The traditional method of workers comp has a good amount of down payment to be made for the insurance to be in place. This situation is gone in pay as you go workers comp method. You don’t need to deposit anything earlier.
- No Installment Fees: Generally, there are installment fees when it comes to workers compensation. Employers pay these installment fees in addition to the existing premium. In the pay as you go method, there are no installment fees. This reduces the burden of the employer by a big margin.
- No Estimates: In the traditional method, an estimated cost is used to make the payment. Pay as you go removes the guesswork by implementing a rather meticulous way in it. The premium is calculated according to the current payroll.
- Accurate Premiums: With no estimations in the calculation, pay as you go workers comp emerges as an accurate alternative. Moreover, there is no need to worry about the premium dates and all since the premium is deducted automatically from your account.
These are the 4 major benefits of having a pay as you go workers comp. It will ease the pressure on the employers or the HR personnel in charge of handling the compensations. In addition to these benefits, your pay as you go method will also be helpful during the audits. Earlier, there were annual audits that would trouble the business owners. These audits meant taking out the old and new reports and sitting through the entire process. It was a painfully time consuming process.Credits to pay as you go, these audits are no more a matter of trouble. All these points taken into consideration, opt for a pay as you go workers comp right away if you haven’t got one.