Pay As You Go vs. Traditional Workers Comp: Which One Wins?
Traditional workers comp deposits eat cash flow. Pay As You Go through your payroll provider fixes that — here's how the numbers actually compare.
How traditional workers comp is billed
A traditional policy asks for a large deposit at the start of the year — often 25%+ of estimated annual premium — then bills the remainder in installments. At year-end, the carrier audits your actual payroll. If you underestimated, you owe the difference.
How Pay As You Go changes it
Through our partnerships with Payroll providers, premium is calculated every pay period against actual wages. There's almost nothing due at policy start, no year-end audit shock, and premium flows through payroll automatically.
Which one wins?
For most Arizona small and mid-sized businesses, Pay As You Go wins on cash flow every time. The premium rate is the same — you're just paying it accurately as you go, instead of guessing and reconciling.
