Pay As You Go Workers’ Comp

Workers Comp 
Pay As You Go Workers’ Comp

Pay-as-you-go workers’ comp is a payment plan that calculates your workers’ comp premiums each pay period based on your actual payroll amounts. Because it’s recalculated for each payroll cycle, rather than all at once upfront, you only pay for what you need.

With Hourly’s pay-as-you-go workers’ comp solution, premiums are automatically taken out of your payroll and sent directly to your insurance carrier. It’s an easier, cost-efficient solution to workers’ comp payments.

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The Benefits of Pay As You Go Workers’ Comp

  •  Don’t overpay, keep your cash instead: With workers’ comp premiums calculated from your actual payroll in real-time, you can skip annual estimates and stop overpaying. Instead, you can use that cash to grow your business
  • Automate payments: Save time with automated payments taken directly from your payroll and sent to your insurance carrier each cycle.
  •  No more audit surprises: Thanks to highly accurate premiums based on real-time data, audits vary much less, and you can stop worrying about surprise audit bills at the end of the year.
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Traditional vs. Pay As You Go Workers’ Comp

Compared to traditional workers’ compensation—which estimates your annual payroll and requires lump sum payments—pay-as-you-go pricing is much more efficient and small business friendly.

1. Traditional workers’ comp:

  • Comes with a large lump sum to be paid upfront
  • Estimates premiums annually
  • May have you paying for coverage you don’t need
  • May lead to hefty audit bills if you underestimated
  • Can be a significant drain on your bank account

2. Pay-as-you-go workers’ comp:

  • Charges per payroll cycle, rather than all at once in a big down payment
  • Calculates premiums based on actual payroll and risk, in real-time
  • Ensures you won’t overpay for coverage
  • Takes the guesswork out of workers’ compensation
  • Improves your cash flow
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FAQs About Pay As You Go Workers’ Compensation

How does Hourly calculate workers’ comp insurance?

Hourly calculates workers’ comp using class codes and risk analyses for each pay period. That means we look at the jobs your employees perform each payroll cycle and the risks associated with those, your industry, and company history—and calculate your workers’ comp premiums accordingly.

We adjust pricing as class codes change, and we use your actual payroll data to bring you the most accurate, affordable workers’ compensation coverage on the market.

Does Hourly provide workers’ compensation insurance?

Hourly is a payroll and workers’ comp platform designed to make life easier and more affordable for small businesses.

While we’re not an insurance agency and don’t offer insurance through our platform, we partner with A-rated insurance carriers to drive down high insurance premiums and make workers’ comp more cost-effective.

Is workers’ comp required?

While most states require business owners to have some sort of workers’ comp insurance in place, certain states allow small businesses with a certain number of employees to get around the requirement.

What is workers’ comp?

Workers’ comp (short for workers’ compensation) is a type of insurance paid for by employers. It ensures that you have funds in place to compensate your workers if they sustain an on-the-job injury or illness.

Where do I purchase workers’ comp?

While employers in North Dakota, Ohio, Washington, and Wyoming must purchase directly from their state (these are known as monopolistic states), in most other places, states allow employers to purchase from any state or private insurance company.

Lower your Workers’ Compensation Premiums and Improve your Cash Flow

Hourly offers affordable, pay-as-you-go workers’ comp pricing, plus a convenient payroll service and time tracking platform. We work with small business owners to lower premium payments, improve your cash flow, and help you run payroll in seconds. Talk to your insurance provider to get started with Hourly today.

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