Pay as You Go Workers Compensation

A pay-as-you-go workers’ compensation solution allows employers to pay premiums based on actual payroll figures rather than estimates. It is not standalone insurance and does not replace an employer’s existing policy; businesses must still maintain workers’ comp coverage that meets state requirements.

Instead of paying a lump sum upfront, employers using pay-as-you-go pay premiums incrementally during each payroll cycle. They can report payroll data to their insurer or integrate workers’ comp with their payroll service for automated payments.

While a pay-as-you-go solution does not reduce the cost of workers’ comp, it often leads to more accurate premium payments, potentially resulting in more favorable audits. Unlike traditional plans where incorrect premium estimates may lead to owing or being owed money at the end of the coverage period, pay-as-you-go offers real-time accuracy.