Pay-as-you-go workers’ compensation insurance is a policy where the premium adjusts with every processed payroll. This prevents shocking post-audit bills by basing the insurance premium on actual payroll for accurate bimonthly billing. Traditional workers’ compensation insurance policies estimate annual payroll costs with large down payments and later audit policies to reconcile premium.
How Pay-As-You-Go Workers’ Comp Works
Pay-as-you-go workers’ compensation adjusts premium every month based on actual payroll costs and employees’ job classification.