For many businesses, managing Workers Compensation Insurance can be a challenge — especially when premiums are based on estimated payrolls rather than actual numbers. Overestimating means overpaying all year, while underestimating can result in a surprise bill after your audit. That’s where Pay-As-You-Go Workers Comp comes in. At Skyscraper Insurance, we help businesses simplify their Workers Compensation payments by connecting premiums directly to their payroll, giving you better control, smoother cash flow, and fewer surprises.
The Problem with Traditional Workers Comp Billing
Under a standard Workers Compensation policy, your premium is calculated at the start of the policy term based on projected annual payroll. You typically pay a large upfront deposit, followed by fixed monthly or quarterly payments. The problem? Payroll rarely stays the same. You may hire seasonal workers, expand operations, or experience slow months. When your actual payroll doesn’t match the projection, you face an audit at the end of the year — and that audit can mean unexpected additional payments.
Many business owners find themselves caught off guard, either tying up cash they didn’t need to or getting hit with surprise costs when the policy is adjusted. Traditional billing can also strain cash flow for smaller or growing companies trying to stay flexible.
The Pay-As-You-Go Solution
Pay-As-You-Go Workers Comp eliminates those problems by aligning your insurance premiums with your real-time payroll. Instead of paying large estimates upfront, your premiums are calculated each pay period based on your actual payroll data. The result is accuracy, transparency, and improved cash flow.
Skyscraper Insurance partners with trusted payroll providers and carriers to make this process seamless. When you run payroll, the system automatically calculates and deducts your Workers Comp premium for that period. No more guessing, no more large deposits, and no more stressful audits at the end of the year.
How It Works
- Integrate with Payroll: We connect your payroll provider to your Workers Comp policy, ensuring your actual payroll data feeds directly into your premium calculation.
- Automatic Adjustments: As payroll fluctuates, your premiums adjust in real time, keeping payments accurate and predictable.
- No Large Upfront Deposits: You only pay for what you use — freeing up capital for other areas of your business.
- Reduced Audit Surprises: Because your premiums are based on real numbers, the end-of-year audit is smoother, with little to no adjustments needed.
- Flexible for Growth: Whether you add new employees, open locations, or change payroll frequency, your coverage automatically keeps up with your business.
Benefits of Pay-As-You-Go Workers Comp
Improved Cash Flow: Paying premiums based on actual payroll means you’re not overpaying during slow months or tying up funds that could be used elsewhere.
Accuracy and Transparency: Real-time data ensures your premiums reflect your true exposure, reducing the risk of audit surprises.
Easy Administration: Automated systems eliminate the need for manual reporting and help your business stay compliant without extra paperwork.
Scalability: Perfect for growing companies or seasonal businesses where payroll fluctuates throughout the year.
No Surprises: You’ll know exactly what you owe each pay cycle — no large year-end bills or refunds to chase down.
Who Benefits Most from Pay-As-You-Go
This billing method is ideal for businesses with variable or seasonal payrolls, such as:
- Construction and contracting companies
- Restaurants and hospitality businesses
- Medical and healthcare practices
- Retail operations with part-time staff
- Landscaping and maintenance companies
- Any growing small business with changing employee levels
Even stable, year-round businesses can benefit from the cash flow predictability and reduced administrative work that Pay-As-You-Go Workers Comp provides.
A Smarter Way to Manage Workers Comp
At Skyscraper Insurance, we understand that business owners want simplicity, transparency, and control over their expenses. Our Pay-As-You-Go Workers Comp programs are designed to integrate seamlessly with your payroll provider, giving you flexibility and peace of mind. You’ll still receive the same great coverage and protection — but with a smarter payment system that fits the way you actually operate.
Get Started Today
If you’re tired of overpaying, worrying about audits, or managing unpredictable cash flow, Pay-As-You-Go Workers Comp might be the perfect solution for your business.
Let Skyscraper Insurance help you set up a program that makes sense — one that adapts to your payroll, keeps you compliant, and lets you focus on what really matters: growing your business.
👉 See if Pay-As-You-Go Fits Your Payroll and discover how easy it can be to simplify your Workers Comp today.
