Workers Compensation 101

Pay As You Go workers’ compensation billing has become a bit of a buzzword these days in small business circles. Yet many employers still don’t fully understand what it is, what it does, and why they should make the switch from traditional “direct billing” options. So we’ve boiled it down to provide a quick and concise […]

Pay As You Go workers’ compensation billing has become a bit of a buzzword these days in small business circles. Yet many employers still don’t fully understand what it is, what it does, and why they should make the switch from traditional “direct billing” options.

So we’ve boiled it down to provide a quick and concise explanation for just exactly how it works, and why it should be the only way that small businesses pay for their workers’ comp coverage.

Simply put, from cost, cash flow and convenience perspectives, Pay As You Go billing by AP Intego is the best way for businesses to pay for their workers’ compensation coverage.

How it Works
Based on a partnership between AP Intego and your payroll provider, Pay As You Go Billing (“PAYG”) links your workers’ compensation policy directly with our payroll process and automatically remits payment to your insurance carrier.

Unlike traditional billing, where your premium is based on an estimated annual payroll, PAYG systematically calculates your premium using your actual payroll data, every pay cycle. This ensures that your PAYG premium is a true reflection of your business and brings you the following benefits:

– No large upfront deposits
– Predictable cash flow management
– Decrease or avoid surprises
– Saves time and money

No large upfront deposits, predictable cash flow management
Traditional billing methods ask you to fund between 25-100% of your estimated annual premium up front. Rather than paying for your insurance up to a year in advance and tying up vital cash, with PAYG you pay your premium as you go, one payroll period at a time.

Avoid or lower audit expenses
Because traditional billing policies are based on an estimated premium, they can’t adjust to unexpected payroll changes, resulting in costly and time-consuming audits.

Conversely, PAYG accurately accounts for payroll variability by calculating your premium every pay cycle and adjusting your bill accordingly. While PAYG doesn’t guarantee you will not be audited, it certainly lowers the cost, time and complexity associated with traditional billing audits and in most cases eliminates the need completely.

Saves time and money
In addition to spending far less time on your year-end audit, with PAYG there are no checks to write or payments to remember, allowing you to spend far more time focusing on your business instead of workers’ compensation paperwork. And unlike traditional billing options, with PAYG there are no installment-billing fees from insurance companies.

About AP Intego
AP Intego combines all the traditional licensing, sales and service capabilities of a national brokerage with the passion and pursuit of using technology to make insurance product acquisition simpler and more efficient for our customers. As a national leader in providing businesses Pay As You Go billing options, our team will help you find the coverage you need and seamlessly integrate the billing process with payroll deduction. We have long understood the insurance needs of business customers and are focused on redefining the evolving needs of every stakeholder in the process.

  • Client : Scott Helfrich
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