Risk & Business Magazine Hardenbergh Insurance Group Magazine Fall 2017 | Page 29

WORKERS’ COMPENSATION Pay-As-You-Go Workers’ Compensation Insurance W orkers’ compensation insurance is one of those necessary evils. As a business owner, you hate to spend money on it, but when a claim comes up, you’re sure glad you did. Of course, workers’ comp insurance is compulsory in the state of New Jersey, as in every other state. There is no way to opt out of it, much as you may want to. But at least there’s a way to take some of the pain out of the process of estimating your obligation for every employee at the start of each policy period. The option is called “pay-as-you-go,” which is exactly how it works. Offered by Workplace HCM—a national Human Capital Management firm offering cloud-based payroll, human resource, compliance, employee onboarding, and benefit administration services—pay- as-you-go plans present a convenient alternative to traditional worker’s comp plans. With traditional plans, employers are asked to produce information about each employee’s wages and degree of job risk. A salesperson in one office will be charged the exact same rate as a salesperson across town; the same applies to a clerical worker. The salesperson’s rate, naturally, will be higher than the clerical worker; since the salesperson travels, the job risk is greater. Many insurance companies require up- front down payments on these premiums and will then continue to bill employers monthly or quarterly. At the end of the year, the insurance company will perform a workers’ comp audit and look at the actual payroll versus the initial estimate. If additional personnel were unexpectedly hired to accommodate a new contract, for example, the employer would have to make a balloon payment to account for the differential at year’s end. If employees were laid off during the period, the employer likely would have overpaid for premiums and will be due a refund. The chance of over- or underestimation of costs leads to overall unpredictability, complicating the normal budgeting process. If you often find yourself in a deficit or overpayment position, it might make sense to research a pay-as-you-go option, such as the one provided by Workplace HCM. Our program allows you to calculate premium costs based on actual payroll data—not estimates—so you never need to worry about being over- or undercharged. By using up-to-date payroll information each period, the system makes the process work fairly, down to the penny. For more information, reach out to your local Workplace HCM office or visit www. workplacehcm.com. + “BY MOVING MY PAYROLL TO WORKPLACE HCM, I SAVED MONEY AND WAS ABLE TO ELIMINATE WORKER’S COMPENSATION AUDITS. I’M THRILLED WITH THE TIME AND AGGRAVATION THE MOVE HAS SAVED ME!” - Dr. Devon Coughlin, Revolution Chiropractic Workplace was founded by Kevin Kardos and Frank Plum in Marlton, NJ. With a combined 30 years of industry experience, they bring a wealth of knowledge and expertis e to the payroll and human capital management arena. www.workplaceHCM.com You can reach Kevin at 856-334-9711 or [email protected] Kevin Kardos 856.334.9711 Vice President 8000 Sagemore Drive, Suite 8102 Marlton, NJ 08053 [email protected] www.WorkplaceHCM.com MAKE A BETTER WORKPLACE. 29