Quick Answer
Pay-as-you-go workers' comp pulls actual payroll from your payroll system each pay period and bills premium based on real payroll — not a year-ahead estimate. It eliminates the year-end audit surprise and reduces upfront deposits from 20–25% of estimated annual premium to as little as pricing varies by classification, payroll, operations, claims history, limits, and underwriting. Most California specialty WC carriers now offer it. Call (858) 925-9555.
How It Works
- You bind a WC policy with a carrier that integrates with your payroll provider (Gusto, ADP, Paychex, QuickBooks, Square Payroll, etc.)
- Each pay period, the carrier receives your actual payroll data
- WC premium for that pay period is calculated and billed automatically
- No big year-end audit because the carrier has been tracking real-time
Why It Helps
- No big deposit — most carriers ask pricing varies by classification, payroll, operations, claims history, limits, and underwriting upfront vs the traditional 20–25% of estimated annual premium
- Cash flow matches operations — premium follows the work
- No audit surprise — you never get a bill for "we underestimated your payroll"
- Easier seasonal adjustments — premium drops when payroll drops
When Traditional Annual Premium Still Makes Sense
- Very small contractors with stable payroll
- Carriers offering steep upfront discounts for paid-in-full annual policies
- Operations where payroll integration isn't easy
California Carriers That Offer It
Most California specialty WC writers offer pay-as-you-go programs — Employers, ICW Group, Berkshire Hathaway Homestate, and others Asena Capital is appointed with. Plan integrations vary.
Switching to pay-as-you-go? Call (858) 925-9555 and we'll match you with a carrier that integrates with your payroll.
Related: Workers' Comp Cost · Workers' Compensation
Eliminate the audit surprise. Call (858) 925-9555.