Learn how pay-as-you-go insurance could save time, money and make annual audits a breeze.
Pay-as-you-go workers’ comp is a billing option for employers to pay their workers’ compensation insurance premiums based on actual — not estimated — payroll expenses.
Many small businesses, including restaurants, retail shops, professional services and more opt to pay more accurate workers’ comp insurance premiums based on real-time payroll data — and you can, too.
Jump ahead to learn:
Workers’ compensation insurance can help protect your employees and your business in the event of workplace injury or illness. Its coverage requirements are regulated by the state, and it may be required where you live.
The cost of workers’ compensation depends on a number of factors, including the size of your business, its location and the type of work each employee performs. Your payroll is also a factor.
What makes pay-as-you-go different from paying one lump sum for your workers’ comp is you pay a portion of your annual premium every time you run payroll. And paying in real time on the actual employees you have can save your business time and money.
The traditional way a business pays its workers’ comp premium can take its toll on a small business. Business owners are forced to make their best guess about payroll wages at the beginning of the year — but a lot can change in 12 months.
Teams grow and shrink, roles can change, and a whole slew of things can alter what your actual insurance premium will be. And the annual workers’ comp audit could result in an unexpected payment on an insurance premium. It’s messy, it’s cumbersome and it can be a cashflow nightmare.
Pay-as-you-go links your workers’ comp policy directly to your payroll process and automates payment to your insurance provider. It calculates your premium using actual payroll data every pay cycle, and it doesn’t tie up your money in a large upfront deposit.
You only pay for the workers’ comp you need on the employees you have in real time.
Simply sign up through your payroll provider and just run your payroll like you always do. NEXT will receive your payroll data for that pay period and calculate the real-time workers’ comp premium payment.
You’ll receive an invoice and NEXT automatically withdraws the accurate premium from your business bank account each pay cycle.
| TRADITIONAL WORKERS’ COMPENSATION | PAY-AS-YOU-GO WORKERS’ COMP | |
| PRICING | Based on estimated wages a year in advance | Based on actual wages during the payroll cycle |
| UPFRONT PAYMENT | Usually there is a downpayment of 25%-100% of the annual premium | No down payment |
| BILLING | Monthly or annual payments | Automatic payment through the business bank account |
| ANNUAL WORKERS’ COMP AUDIT | Adjustments could be required after an audit, and a bill for a large underpayment could result | Little to no adjustment needed since premium is tied to actual payroll |
Many benefits exist for workers’ comp pay-as-you-go insurance billing, including:
If you’re a business owner, sign up for workers’ comp through a NEXT Connect partner payroll services provider. NEXT offers pay-as-you-go workers’ comp through over 100 partners, including Intuit’s Quickbooks, Square, Gusto, Toast, Rippling, Patriot, OnPay, Homebase and more.
NEXT offers our own coverage, and we work with over 30 insurance carriers to help you get the right workers’ compensation coverage in your state.
Once you’re signed up, you can view policy information and payment history directly through your customer dashboard.
And if you ever need help, our licensed, U.S.-based insurance professionals are available.
We also offer standard workers’ comp coverage without pay-as-you-go on NEXTinsurance.com. It only takes about 10 minutes to get a quote.
NEXT makes it fast, easy and affordable to protect your small business — and we were one of the first to offer pay-as-you-go workers’ comp billing. We offer insurance for more than 1,300 professions who trust us to protect their business.
If you’re interested in exploring options, we’ll ask a few questions about your business and give you a quote. You can select your coverage and purchase your policy — all in about 10 minutes. Your certificate of insurance will be available immediately, and you can access your policy 24/7 via web or mobile app.
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