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