Pay as you go workers compensation is becoming more popular and often requested by temp staffing companies thanks to a number of benefits that it can provide. The traditional method of providing work comp insurance involves paying upfront costs based on estimated payroll and then not knowing final costs until you complete the annual audit of the actual incurred payroll. Pay as you go workers comp is a more common sense approach to the issue, and one that can save you time and money as well as providing you with many other benefits. Workers comp is required by law, and pay as you go workers compensation offers you the best way to stay compliant while controlling unessary out of pocket costs. Here are some of the biggest benefits that pay as you go workers comp has to offer.
- Lower startup costs – Pay as you go workers compensation eliminates the huge up-front payments that traditional policies include. Typically with pay as you go workers compensation you only need to pay an estimated first months premium and after that you’ll pay into the account in real time, giving you the ability to better manage your cash flow. Pay as you go workers compensation lets you keep more money to operate your business and only pay what you owe.
- No Estimates – Pay as you go workers comp allows you to avoid the archaic estimated payment method that other policies use. With pay as you go workers comp your payments are based on actual data and figures from your payroll based on classification code.
- No Audits – For most Temp Staffing Companies, this is the biggest benefit of pay as you go workers compensation policy. Even though they could end in a return on your payments, audits can result in surprise additional costs and time consuming. Having other parties review all of your company data can be stressful and many times the interpretation of the basic NCCI manual varies from auditor to auditor depending on company guidance as well. Pay as you go workers compensation eliminates the need for costly year-end audits and allows you to keep your company moving forward.
- Real Time Management – Know your total costs and profit margin or payroll burden upfront. With pay as you go workers comp you can review data as you need to and get an accurate look at your costs to do business. So when you add a new code you can get the total costs right then and know the costs even before you report at months end.
- Saved Money and Time – These benefits of pay as you go workers comp are honestly countless and free your time to run your company. Pay as you go workers comp saves your company money by eliminating audits and up-front payments, and saves you time by eliminating audits and letting you manage your information quickly. In short, pay as you go workers compensation is the best way to solve your workers compensation needs. MIG Temp Staffing Division offers Pay As You Go Work Comp on several different carrier platforms depending on state exposure, class codes, years in business, loss history and total payroll. Please visit www.StaffingWC.com for more information.
MIG is your resource for Temp Staffing Insurance! As a proud member of the American Staffing Association we will always continue to innovate with new programs that best fit the needs of your industry.