01 Dec Smooth Cash Flow With Pay-as-you Go Workers Compensation
Businesses of all sizes monitor the flow of cash. A large company needs to have reserves of capital to be able to respond to opportunities that might give the business the edge over competitors, and a smaller business needs to carefully manage financial resources just to stay afloat in these challenging times. Pay-as-you go workers compensation insurance helps businesses of all sizes to control cash flow better.
Carrying workers’ compensation insurance is mandatory for almost every business in the country, but many employers find that standard workers’ compensation insurance imposes a heavy burden on their financial and administrative operations. Typically the employer is required to estimate the annual payroll of the business in advance and make a substantial payment of premiums up front to cover future workers’ compensation obligations. The employer’s books may be audited at the end of the year and penalties may be imposed if an audit identifies any irregularities, such as inaccurate payroll forecasts.
Pay-as-you go workers’ compensation allows an employer to pay insurance premiums each payroll period, and there is no need to estimate payroll in advance, make advance down payments, or undergo audits. This arrangement offers savings in workers’ compensation costs and improves business cash flow.
Talk to your insurer or agent about pay-as-you go workers compensation insurance. It could be just the product you need to get business cash flowing smoothly.