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There are two types of workers’ compensation insurance: traditional and pay as you go. Traditional workers’ comp insurance requires a down payment, usually a large one. But pay as you go policies are more flexible and allow small payments over time. While traditional policies require a down payment of a few hundred dollars, the down payment for pay as you go policies must be more than thirty days’ worth of premiums.

Traditional workers’ comp insurance requires an initial down payment. The premiums are set based on an estimated amount of gross payroll wages and paid to the insurance company quarterly. However, the insurance company will periodically audit you and collect the underpaid amount. This audit bill can be a huge unexpected expense, and the extra money could divert cash flow from other important expenses. So, pay as go workers’ comp is an effective and affordable solution for your business.

Pay as you go is a more flexible way to pay workers’ compensation premiums. It eliminates the risk of a sudden spike in your payroll, and you only pay for what you actually owe. You can also budget your costs accordingly. With pay as you go, you can even save a few bucks, because it does not require an upfront payment. The best part of this option is that it is auditable.

Pay as you go workers’ compensation is a relatively new option, and not all insurance carriers are interested in it yet. As time goes by, more insurance carriers may decide to participate. Until then, you’ll be limited to the few companies that are interested in implementing it. If you’re considering this option, you should know that you should expect it to be available soon. But for now, it’s not possible to tell if it will be a good choice for your business.

Pay as you go workers comp is another way to save money. In a traditional workers’ compensation system, you must make a large initial down payment and then pay a quarterly premium. Once your payroll is up and running, you only need to pay premiums when they’re due. By paying only when you need them, you can avoid the hassle of being stuck with a huge audit bill at the end of the year.

Pay as you go workers’ comp is a more efficient way to pay your workers’ compensation premiums. It eliminates the need for end-of-year reconciliations and audits at tax time. It also allows you to properly budget and plan for your business’s needs. It’s also an ideal option for small businesses, as it allows you to adjust premiums and reduce the cost of your policy.