Pay-as-you go Workers Compensation Insurance now available with Eddy Payroll
By Eddy Team — October 4, 2023
This kind of policy, which is automated and linked to your actual payroll, can help improve your cash flow and simplify your workers' comp coverage. We’re excited to offer workers comp insurance because payroll and workers comp are deeply intertwined: most states require workers comp insurance as soon as an employer hires their first employee, and insurance premiums are calculated at least in part using payroll amounts.
What is worker’s comp insurance?
Workers’ compensation (“workers comp”) insurance is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment. Payroll and workers comp are deeply intertwined: most states require workers comp insurance as soon as an employer hires their first employee, and insurance premiums are calculated at least in part using payroll amounts. Workers comp insurance is typically required by law in most states as soon as an employer hires their first employee. The regulatory-required coverage provided by a workers comp policy varies depending on the state, but typically includes benefits for medical expenses, disability payments, and rehabilitation costs.
How are workers comp premiums calculated?
Workers comp premiums are calculated using a number of inputs, but one of the main ones is payroll expense. There are two main types of plans:
- pay-as-you-go workers comp insurance allows businesses to make premium payments in real-time based on their actual payroll amounts.
- Yearly audit workers comp insurance requires businesses to estimate their payroll amounts at the beginning of the policy term and make a lump-sum payment for their workers comp insurance premiums, adjusting at the end of the year as necessary. A Yearly Audit plan can often be converted to a pay-as-you-go plan in the middle of the policy term length
Broker of Record (BOR) changes
If you already have pay-as-you-go workers comp insurance you can do a Broker of Record transfer for your existing insurance. This BOR transfer will allow you to keep their existing policy in place while moving to Eddy’s payroll platform.
The Value of Pay As You Go
- Simple administration: Integration with Eddy payroll and automated payments streamline your administrative processes.
- Better cash flow management: Premiums are paid one payroll period at a time, keeping more cash in your business.
- Save time and money: Premiums are automatically calculated each time payroll is run, with no installment-billing fees.
- Reduce or eliminate audit expenses: Premiums are adjusted to changes in your payroll in real-time, to support audit accuracy.
Why NEXT?
NEXT Insurance is 100% dedicated to small business. They offer tailored business insurance with zero hassle and big savings, and more than 420,000 small businesses trust them.
How to get a quote
To get a quote, login to your Eddy account and find the Next insurance integration card on the Admin Settings page. Open this card to get a quote, or call NEXT at 888-289-2939 and speak with a licensed agent.
Pay-as-you go Workers Compensation Insurance now available with Eddy Payroll
By Eddy Team — October 4, 2023
This kind of policy, which is automated and linked to your actual payroll, can help improve your cash flow and simplify your workers' comp coverage. We’re excited to offer workers comp insurance because payroll and workers comp are deeply intertwined: most states require workers comp insurance as soon as an employer hires their first employee, and insurance premiums are calculated at least in part using payroll amounts.
What is worker’s comp insurance?
Workers’ compensation (“workers comp”) insurance is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment. Payroll and workers comp are deeply intertwined: most states require workers comp insurance as soon as an employer hires their first employee, and insurance premiums are calculated at least in part using payroll amounts. Workers comp insurance is typically required by law in most states as soon as an employer hires their first employee. The regulatory-required coverage provided by a workers comp policy varies depending on the state, but typically includes benefits for medical expenses, disability payments, and rehabilitation costs.
How are workers comp premiums calculated?
Workers comp premiums are calculated using a number of inputs, but one of the main ones is payroll expense. There are two main types of plans:
- pay-as-you-go workers comp insurance allows businesses to make premium payments in real-time based on their actual payroll amounts.
- Yearly audit workers comp insurance requires businesses to estimate their payroll amounts at the beginning of the policy term and make a lump-sum payment for their workers comp insurance premiums, adjusting at the end of the year as necessary. A Yearly Audit plan can often be converted to a pay-as-you-go plan in the middle of the policy term length
Broker of Record (BOR) changes
If you already have pay-as-you-go workers comp insurance you can do a Broker of Record transfer for your existing insurance. This BOR transfer will allow you to keep their existing policy in place while moving to Eddy’s payroll platform.
The Value of Pay As You Go
- Simple administration: Integration with Eddy payroll and automated payments streamline your administrative processes.
- Better cash flow management: Premiums are paid one payroll period at a time, keeping more cash in your business.
- Save time and money: Premiums are automatically calculated each time payroll is run, with no installment-billing fees.
- Reduce or eliminate audit expenses: Premiums are adjusted to changes in your payroll in real-time, to support audit accuracy.
Why NEXT?
NEXT Insurance is 100% dedicated to small business. They offer tailored business insurance with zero hassle and big savings, and more than 420,000 small businesses trust them.
How to get a quote
To get a quote, login to your Eddy account and find the Next insurance integration card on the Admin Settings page. Open this card to get a quote, or call NEXT at 888-289-2939 and speak with a licensed agent.
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