Advantage June 2013
June 2013 Newsletter
From The Top
By Rob Basso
President, Advantage Payroll Services
Businesses are often reviewing their budgets and trying to alleviate large, burdensome payments. One common, large expense is Workers’ Compensation payments. Do you pay your Workers’ Compensation in one lump sum? Wouldn’t you rather ease that burden and pay one payroll period at a time? With Advantage Payroll’s partnership with Integrated Coverage Group, increase your monthly cash flow with our Pay-As-You-Go workers compensation program.
After having a conversation with several clients I was surprised how many of my small business clients didn’t realize that a convenient, more financially manageable solution existed. With a normal policy, employers have to put 25% down and make large quarterly payments. By allowing you to make payments with each payroll, Pay-As-You-Go Workers’ Compensation programs are designed to increase your cash flow while helping to minimize large, unexpected payments following a premium audit. There’s no additional charge for adding your premium to your payroll processing, no need to manually input data separately from your payroll reporting, and no installment billing fees.
Below you’ll find a list of the most commonly asked Workers’ Compensation questions that we receive with the answers. I hope this will shed some light on the many questions I’m sure you have on how this can change the way you pay for your Workers’ Compensation policy. Don’t forget, the entire staff at Advantage Payroll Services is here to answer any questions you have on any of our products and services. It’s our pleasure to continue to help you streamline all your small business needs and we are honored to be your trusted resource.
Q & A Portion
1. What is Pay-As-You-Go Worker’s Compensation?
A Pay-As-You-Go workers compensation policy allows you to simplify insurance payment processing as well as year-end audits by using real-time payroll data transmitted directly from Advantage Payroll. The Pay-As-You-Go policy calculates insurance premium each payroll period based on actual payroll reported which eliminates the need for estimated payroll.
2. How does it work?
Your workers compensation carrier is in direct contact with Advantage Payroll through an automated system which allows them to see the exact payroll you run each pay period. The insurance carrier will charge you each pay period for premiums incurred based on wages paid.
3. How is “Pay-As-You-Go” Workers Compensation different from a traditional policy?
The “Pay As You Go” Program eliminates the necessity of a significant down payment at the beginning of each policy period. It also offers you the convenience of eliminating a premium audit at the end of the policy period. Many Advantage clients find that these features are very beneficial with regards to their cash flow.
4. What are the benefits to switching from a traditional policy?
Transitioning to a Pay-As-You-Go workers compensation policy affords you the following benefits:
- Better Cash Flow Management
- No Large Down payment
- No Need to Manually Input Data Separately From Your Payroll Reporting
- No Installment Billing Fees
- Accurate premium calculation based on current payroll — no estimating.
- No checks to write or monthly billing fees.
5. What is the additional cost for the “Pay As You Go” feature?
No additional cost! There is no cost to you to have the convenience and benefits of this type of workers compensation plan.
6. What will happen to my current Workers Compensation policy if I switch to “Pay As You Go”?
In most cases we can transition your current “traditional” workers compensation policy to a “Pay-As-You-Go” policy by completing a simple one-page application.