How is your Workers’ Comp policy working for you? If you’re having trouble managing these payments, it might help to know that there are options, especially as we ramp up into Maine’s busy season!

Comp-As-You-Go (CAYG for short) is a payment plan offered in partnership with MEMIC that allows businesses to pay their Workers’ Comp premiums on a scale that is directly related to their real-time payroll.

Who needs Comp-As-You-Go?

If your business has had trouble meeting high Workers’ Comp premiums check out CAYG. As a general guideline, this payment plan works best for small or seasonal businesses that have fluctuating payroll cycles. Discuss the options with us at your next review.

Why Switch?

Here are three of the best reasons to consider switching your current Workers’ Comp plan.

1. Premiums Based on Payroll

Your business’s premiums are based on actual payroll numbers with Comp-As-You-Go, so you aren’t faced with overwhelming premiums that put added stress on your cash flow. With payments based on real-time payroll, premiums for seasonal fluctuations in staffing that ramp up payroll are paid when you have the added cash, rather than later in the year when business may have slowed down.

2. Less Potential for Errors & Surprises

Pending accurate reporting, Comp-As-You-Go has the potential to reduce the likelihood of errors or surprises related to billing. You know what we mean: time-consuming audits at year-end for example, or over or underpayment of premiums that need to be reconciled.

“We receive many questions on this topic. Business owners should note that you are still subject to audit under Comp-As-You-Go,” shares Justin Murphy, a Portland branch United Insurance agent specializing in commercial insurance. “We advise business owners to be particularly mindful of any situations where earnings potentially aren’t reported on payroll. Some examples include issuing manual checks outside of payroll, having uninsured subcontractors, or paying commissions to staff members which aren’t reported as wages.”

It’s important to remember that Comp-As-You-Go drives directly from your payroll processes and must be adjusted to reflect each and every payroll cycle accurately to maximize the potential benefit.

3. Payroll Integration

Comp-As-You-Go also integrates directly with many common payroll providers including ADP, Paychex, and Advantage. Since CAYG fits into existing systems, reporting is a breeze. Even if integration with your payroll provider is not yet supported, many workers’ comp carriers will allow you to report payroll through their websites for each pay period.

Have we piqued your interest in Comp-As-You-Go? Interested to learn more? Contact your local United Insurance agent to discuss how a CAYG payment plan can help reduce the impact of your Workers’ Comp premiums today.