Corporate Payroll Services

If you own a business with one or more employees, workers compensation insurance is essential. This insurance covers your company and your employees in case of work-related injuries or illnesses. Without workers compensation insurance, if an employee were to experience any injury or illness on the job, you are financially liable.

Many employers are not happy with traditional workers compensation insurance due to the high up front down payment required. When obtaining a workers compensation policy, you need to make a down payment which is usually 25% of your estimated premium. You must then pay the remaining 75% before the covered period is over. This can be broken up into payments based on an agreement made with your carrier.

It does not end there. At the end of the policy period, there is an audit. During this year-end workers comp audit, it will be determined whether you overpaid for your policy or underpaid. If you underpaid, you will need to make up the difference and also submit a down payment for the new covered period. If you overpaid, you are eligible for a refund, but not right away. This may take several weeks or more to receive, and in the meantime, you are still responsible for the down payment for the new covered period.


It’s time to stop overpaying for your workers comp policy, and pay only what is needed.

Eliminating up-front costs and outdated payment methods are two of the biggest reasons businesses are turning to pay-as-you-go for workers comp insurance.

Pay-as-you-go (PAYG) workers comp is a great alternative to traditional workers comp policies. Here is why:

  • There are no down payments to get started.
  • Premiums are based on real-time payroll, making them more accurate.
  • Year-end audits are simplified, and usually little to no money is due at the end of the period.

With PAYG workers comp, you can help improve your company’s cash flow which is especially important during these uncertain times. Without large down payments or unexpected year-end balances due*, you can allocate funds to where they matter most.


How can I get a Pay As You Go Workers Compensation Plan?

Check with your payroll provider to see if they offer pay-as-you-go workers comp insurance. With PAYG workers comp, you can work with your existing payroll service provider and/or tax administrator to pay a single bill each pay period by combining your workers’ compensation premium with your payroll.

Not all insurance companies offer, and not all payroll providers will support a pay-as-you-go workers comp premium payment option. If your payroll provider does not offer this option, you may want to convert to one that does.

To qualify for PAYG workers compensation, you should:

  • Have one employee (not an independent contractor) other than yourself.
  • Run consistent payrolls. If you are a company who runs payroll sporadically, this may not be a good fit.
  • Speak with a licensed insurance specialist to determine your full eligibility.

Ready to save money while keeping your company and employees protected with workers comp insurance?


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*Each policy is different. Not all PAYG customers have a $0 year-end balance. Results may vary.

This article provides general information, and should not be construed as specific legal or insurance advice. As with all matters of a legal nature, you should consult with your legal counsel. EasyWComp and Corporate Insurance Solutions will not be liable for any direct, indirect, special, consequential, incidental, punitive, or exemplary damages in connection with the use by you or anyone of the information provided.