Corporate Payroll Services

Most businesses today are very interested in conserving as much cash as possible.  Keep reading to learn how something we call, “Pay as you go” (PAYG) workers comp insurance, can improve your cash flow.

All states except Texas require workers compensation coverage for most employers.  In about half of the states, employers must have workers compensation coverage even if you have only one employee.

With traditional workers comp insurance, there is a large down payment based on your estimated annual payroll.  Then there are additional estimated payments due, so that well before the year is up you have paid for the whole year!  If you overestimated your annual payroll, then you have to wait 2-3 months after your policy term to get a refund.  If you estimated too low, you have a large surprise payment due at the end of the year.

PAYG improves your cash flow by allowing you to pay only as much in workers comp insurance premiums as calculated for each payroll you run.  There is no initial down payment which immediately saves cash outflow.  If you have already paid a down payment and you switch to PAYG, you can get refunded for any unused parts of your down payment and any unearned subsequent payments you have made.

If you have been in business for at least a year, you might have experienced a workers comp audit at the end of the year, which resulted in a large and unexpected payment due.  Since the premiums on pay as you go are calculated based on each payroll, year-end audit adjustments are minimized, and you should not have any large surprises.


What’s the catch?

Why would insurance companies agree to offer pay as you go?  Wouldn’t they rather have cash sooner than later?  Of course they would, but it is less expensive for the insurance carrier to have the premiums calculated with each payroll, than to deal with much more difficult audits at the end of each policy period.  PAYG is a win for the insurance company AND the employer.

Better cash flow with no additional expense.  No down payment.  Worry free.  What’s not to love?

Corporate Payroll Services and Corporate Insurance Solutions are part of the same company.  Since Corporate Payroll Services has the payroll data and Corporate Insurance Solutions deals with the insurance details, we are able to offer PAYG workers comp insurance.  We call it EasyWComp, because it is… well… easy.  You can find out more at, request a quote using the link below or call us at (678) 567-6323 and speak with one of our agents.


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