Florida mandates that nearly every business entity carry workers compensation insurance. For small companies, this requirement creates a significant burden. The regulations are complicated and paying the annual insurance premiums disrupts cash flow. Every step of the process distracts the employer from their passion for running their business, redirecting their focus to addressing workers comp requirements.
There is an easier way.
Under the traditional workers’ comp insurance structure, employers pay a large initial down payment. Premiums are set based on anticipated or estimated gross payroll wages. This estimated premium is paid to the insurance company on a scheduled basis, usually quarterly. At the end of the policy, an audit is conducted to determine if you underpaid this insurance and if so, the insurance company collects the outstanding amount due. This bill can be a significant and unexpected expense. Of course, the audit may show that you overpaid your insurance, but this means that needed monies were diverted from cash flow and into an unnecessary expense.
Pay as you go workers comp eliminates all of these issues. Here is how it works:
With this system, you are only paying premiums based on actual wages, which makes it easier to budget and manage. Other benefits include:
Most small to mid-size businesses find that the pay as you go workers comp system best meets their needs and saves them time and money. Curious to learn how pay as you go workers comp could benefit your business? Call Applied Business Solutions at (855) 792-2808 to speak with one of our experts. Ready to dive in? Request a free quote. At Applied Business Solutions, we help employers focus on being employers while we handle the rest.
“Without the use of their PEO service expertise, and website resources, I don’t know what I would have done.”Charley D. – St. Augustine, FL
“Applied Business Services saved me and my company so much money on all of our PEO service needs. Highly recommended to anyone in the market!”F. Reynolds – Jacksonville, FL