Pay as You Go – Flexible Workers’ Compensation Payment Plans for Hospitality, Staffing Services, Construction and More

Savvy business owners know that Workers’ Compensation insurance can play a significant role in protecting their business. It is a critical component of good financial management and risk mitigation since coverage pays for medical expenses, death benefits, and lost wages for employees who fall sick or sustain injuries at work.

Employers with Workers’ Comp coverage, generally set aside a percentage of payroll to pay the premium on this policy. Oftentimes, premiums are paid based on payroll projections for the entire year, which has an impact on liquidity and cash flow.   The policyholder must wait until the final premium audit is conducted by the insurance carrier to determine the final payroll amounts that will be used to calculate the ultimate premium cost of the Workers’ Compensation policy. This process can take 2 to 6 months after the expiration of the Workers’ Compensation policy.   However, a Pay as You Go premium payment program can be a flexible option that lets employers pay premiums based on their actual (real-time) payrolls compared to estimated annual payroll amounts, resulting in more accurate premium payments.  This means there is less of a chance that the policyholder is paying too much throughout the year, or have a large premium adjustment at the end of the policy term.

Better Manage Business Finances and Improve Cash Flow

Since the Pay as You Go option allows employers to pay Workers’ Comp premiums based on actual payroll, it helps to protect cash flow as the number of employees increases or decreases. For example, with seasonal jobs Workers’ Comp costs may be significantly higher during high seasons, and therefore impacts expenses. Since more revenue is being generated it may be a better business strategy to pay more during this time vs. a higher amount when seasonal revenue is lower. In low seasons, when there are fewer employees or work hours reduced – premium costs are adjusted accordingly with a Pay as You Go payment plan.

Pay as You Go offers flexibility and helps employers better manage business finances by having more control over their cash flow.

PMC PayGo Offers More

At PMC, we offer a Pay as You Go Workers’ Compensation option known as PMC PayGo which allows businesses to more easily manage this cost with:

  •  Accuracy – As the premiums paid are based on the actual payroll rather than estimates, you will be able to pay accurate Workers’ Comp premiums with this plan.
  •  Improved cash flow – In this plan, you can pay premiums in small installments rather than lump sums, which helps protect your business finances and improve your cash flow.
  •  Flexibility – You can easily adjust your premiums according to the changes in your payroll.

The PMC PayGo platform includes additional features designed for optimal accuracy and peace of mind.

  •  Easy to use web interface PMC PayGo can be accessed online through our user-friendly platform from anywhere and at any time 24/7
  •  Flexible payment schedules – Premiums can be paid in installments either weekly, bi-weekly, or monthly based on an employers preference
  •  Easy year-end audits – Premiums can be calculated on actual payrolls rather than estimates, reducing the risk of additional charges from end of the year audits
  •  Flexible payroll reporting – Self-report payroll, partner with a payroll vendor, or upload a report via the online platform
  •  Multiple carriers– We have a broad appetite, partnering with multiple carriers nationwide

At PMC, we deliver more options, such as PMC PayGo and customized Workers’ Compensation solutions for all industries. For more information, contact us today at or (781) 449-7744.

By PMC Insurance Group

Since 1996, PMC Insurance Group has worked to help independent agents grow their client base by offering workers' compensation solutions for a wide array of businesses. As one of the most distinguished workers' compensation wholesalers in the country, we have the tools and resources to help you create coverage programs for both small businesses and large accounts.