Why Pay-As-You-Go Workers’ Comp May Be A Smart Solution For Your Business
pay-as-you-go-workers-comp

Why Pay-As-You-Go Workers’ Comp May Be A Smart Solution For Your Business

Workers’ Compensation Insurance Defined

The purpose of worker’s comp is to cover an employee’s medical costs and lost wages due to any work-related injury. Workers’ comp is required by law and governed by individual states. The concept of compensating workers for injuries assumed on the job has existed in some form or another for a surprising number of years. Thousands, in fact. Payments for injury or loss of limb date back to around 2000 BC. Though the extent of protection for workers has differed in every culture throughout the last forty centuries, it's not a new idea.

Why You Want Workers’ Comp

Companies don’t deliberately set out to endanger employees and most organizations implement safety precautions to prevent workplace injuries. But accidents are unplanned. The good news for businesses is the mandatory expense comes with several employer protections.

Workers’ comp is considered an “exclusive remedy” because employees agree to the promise of timely payments for job-related injuries instead of filing a lawsuit. Coverage not only protects your employees, it limits your exposure.

Without the insurance, employees can file civil lawsuits against their employer. Unless negligence is to blame, workers' comp will keep business owners from being held personally liable and owing sizable settlements.Employers who disregard the law face stiff fines and even criminal charges. For more information about state regulations, access links to your state official here.

How Pay-As-You-Go Service Helps Employers

When employers delve into the world of workers’ comp they often wonder why the term “comp” doesn’t stand for “comp”-licated. While well-intended, the complex rules governing coverage, codes, and proper classifications can flap even the unflappable. The calculations used to determine the cost of workers’ compensation coverage are based on the type of work, industry, and number of employees, and can be easily misinterpreted.

It takes dedication and focus to grow a company and consistently achieve organizational goals. Managing workers’ comp on top of everything else a company handles can be stifling. If you’re looking for ways to streamline processes and maximize productivity, Pay-As-You-Go workers’ compensation may be the solution you need.

pay-as-you-go-workers-compensation-insurance

Consolidating workers’ comp payments with payroll simplifies management for employers. Instead of paying insurance invoices separately, the premium is automatically deducted with each payroll.

Pay-As-You-Go offers other these valuable benefits businesses need to better manage coverage, avoid risk, and stay compliant.

  • Cash flow
  • Spread out your workers’ compensation payments and improve budgeting and cash flow.

  • Convenience
  • Each pay period, you can rest easy knowing your wage data is automatically transmitted to your insurance carrier.

  • No down payments
  • Keep money earning interest in your own account instead of paying big down payments.

  • Quality insurance carriers and coverage
  • Insurance coverage provided by the largest, and highest-rated carriers offers the quality you need at competitive rates. You can also access expert insurance industry support whenever questions arise.

  • Visibility into total costs
  • Comprehensive reports are provided each pay period that shows gross wages, exempt wages and premium totals for each employee. The reports provide insight into your insurance costs and help you prepare for the future.

  • Risk reduction
  • Pay-As-You-Go lets you Pay-What-You-Owe! When you pay premiums based on actual payroll figures, you won’t have end-of-year audit surprises.

Are You Eligible To Take Advantage Of Pay-As-You-Go?

The Pay-As-You-Go service is available in all US states except Ohio, North Dakota, Nevada, Washington, and Wyoming.

Workers’ comp is a required part of doing business, but it doesn’t have to be a burden. Would you hire an insurance expert to run your sales team? Probably not. Leveraging tools and services provided by experts designed to improve complex processes lets you focus on running your business.

How Paycor Can Help

Every employer needs to protect themselves, their employees and their cash flow. Contact us to see how your business can benefit from a Pay-As-You-Go workers’ comp plan.


Paycor guided hr software tour

More to Discover

Webinar: EEO-1 Reporting FAQs

Webinar: EEO-1 Reporting FAQs

Based upon the questions you asked we came up with a list of Frequently Asked Questions to help guide you through the changes of the Equal Employment Opportunity Commission (EEOC) to collect 2018 employee pay data and hours worked by Sept. 30, 2019. The additional data required by the new ruling and expanded EEO-1 form is very significant. Is your HR team ready? Watch as we discuss the answers to your questions and how Paycor can help.

Case Study: Camp Woof

Case Study: Camp Woof

Years of manually entering payroll combined with the frustration of paying for every custom report finally took its toll on Camp Woof administrators and led them to seek an automated time and payroll product with a robust reporting feature. “My employees now have easy access online to get their paystubs and information. Payroll is on time and the only mistakes are ones that I make and those are easily fixed. The reporting is great.”—Pete Grossman, Managing Member, Camp Woof Discover how Paycor’s Human Capital Management solution helped this pet paradise in Atlanta streamline payroll, giving the owner and managers time to focus on what matters most—the animals.

Case Study: Data Graphics

Case Study: Data Graphics

After years of unreliable customer support and relying on manual HR processes, Data Graphics turned to Paycor to help manage their employees and overcome HR inefficiencies. “The biggest thing that Paycor has provided is the personal touch. We want to give our employees the best experience possible and we’re always looking for partners that align to the same mission. Paycor has been a true partner committed to our success.” — Brad Butterstein, President, Data Graphics Discover how Data Graphics leverages Paycor’s Human Capital Management solution to improve new hire onboarding, simplify HR recordkeeping and provide their employees more access to manage their business lives.

The Turnover Crisis in Healthcare

The Turnover Crisis in Healthcare

An action plan for finance and HR leaders With an aging population, more chronic illnesses and many nurses nearing retirement, the demand for their skilled replacements is outpacing the supply at an alarming rate. In fact, nearly a quarter of healthcare providers reported having nursing vacancies greater than 10% in 2018*. Unemployment rates are at the lowest they’ve been in decades, which makes the search for qualified talent and filling open job positions more difficult than ever. The demand for healthcare isn’t going to diminish, so it’s important to partner with an HCM provider who can help solve your HR challenges with the proper technology and expertise. Nearly 6,000 healthcare providers depend on Paycor for solutions regarding...