Pay-as-you-go is defined as paying for expenditures as they occur or are used. In most aspects of our daily lives, we pay for goods and services as needed. Given the choice, I believe everyone would prefer to utilize a pay-as-you-go model for insurance, utilities, phone service or even gasoline. I have yet to find anyone willing to prepay for their gasoline a year in advance and then true up with Exxon or Mobil at the end of twelve months. This may be an extreme example, but it’s a very valid point.
If you are passionate about growing your business and building lasting relationships with your clients, understanding pay-as-you-go workers’ compensation is critical in today’s competitive environment. The traditional method of estimating payroll and making estimated premium payments is quickly being replaced by payroll integrations and automated premium calculations. PayGo, TravPay, PayOwe, PrecisePay, Exact Pay and other proprietary branded programs are replacing snail mail and the need to write checks.