When you own a business, having workers’ compensation insurance is not only a smart business move, but it is required in the state of Illinois. Having to pay out one lump sum payments for your workers compensation premiums can take a toll on your business. Instead, you should opt for pay as you go workers’ comp.
Pay as you go workers’ comp allows you to make premium payments each time you run payroll. A traditional workers’ comp policy requires a large lump sum payment to cover the estimated cost of your liability; but with a pay as you go plan, the amount you pay is based on each payroll you run. If you add or lose employees, your premium liability will change.
Some other benefits of a pay as you go workers’ compensation policy are there is no down payment needed, it will improve your cash flow, the reduction in your audit exposure due to real-time premium calculations and automatic withdrawals premiums.
If you’d like more information on this kind of workers’ compensation policy, please don’t hesitate to give us a call. We are happy to help, call us at 847-907-4520.