How Automating Workers’ Compensation Payments Can Save You Money

February 21, 2022

No matter what industry you find yourself in, having workers’ compensation insurance is an absolute must if you have employees. This remains true regardless of the size of your business. Without workers’ compensation coverage, not only could you end up being held liable for an injured employee’s medical costs and lost wages following a work-related injury/incident—but you could end up facing penalties and fines from your state by not carrying the right amount of coverage.

At the same time, workers’ compensation coverage can be costly–and paying these premiums can be cumbersome. Fortunately, there’s an easier way.

By automating your company’s workers’ compensation payments through a reliable pay-as-you-go platform, you can protect your hard-working employees while saving your business money and enjoying added peace of mind.

When you automate your workers’ compensation payments through a payroll-based premium calculation and collection program, you and your business will enjoy numerous benefits.

For starters, it’s important to understand that workers’ compensation rates are calculated based on a percentage of payroll. Oftentimes, companies are required to pay an estimated premium amount that is based on the prior year’s payroll. Unfortunately, this can lead to over payment by the company. Yes, they receive the money back eventually—but in the meantime, cash flow is being tied up for no good reason. This approach can also sometimes lead to underpayment and, to the surprise of the policyholder, payment of a lump sum at the end of the policy term following a premium audit.

Benefits Of Automating Your Workers’ Compensation Payments

Pay what’s actually owed versus what was simply estimated based on the previous year’s payroll.
Free up additional cash flow for your business! Especially in situations where payroll has decreased for a particular pay period.
Pay only during months when you actually have a payroll and avoid paying premiums during months when your business is closed.
Pay in real time. When your rates change, your premium changes! Adjustments can be reflected in the next pay period and each one thereafter so that you’re not hit with a large and unexpected bill come audit time.

Begin Automating Your Payments Today

As you can see, there are many benefits to paying your workers’ compensation payments on an as-you-go basis, and the best way to do this is through the use of payroll-based premium calculation and collection software. The InsurePay Pay-as-you-go platform solution makes this possible.

With InsurePay’s platform, business owners enjoy added convenience and improved cash flow while avoiding audit surprises. Find out more about InsurePay’s platform by contacting us today!