Pay-as-you-go bridges the gap between your workers’ comp insurance policy and your payroll provider. Instead of manual reporting or estimating payroll, your premiums are automatically calculated and paid each pay period. By syncing these two systems, managing your insurance becomes as seamless and predictable as your payroll.
Pay-as-you-go is a modern way to manage your premium payments. Unlike traditional workers’ compensation, where premiums are based on estimates and often require large down payments, Pay-as-you-go uses your actual payroll data.
It’s important to note that Pay-as-you-go is a billing method, not a different type of insurance. It does not replace your coverage or your responsibility to manage subcontractors' certificates of insurance.
No, having Pay-as-you-go doesn't prevent your business from being audited. However, it can significantly simplify the process. Because Pay-as-you-go is a billing method rather than a different type of insurance, your policy requirements remain the same as a traditional plan. However, since your premiums are calculated using real-time payroll data throughout the year, your year-end audit is typically much faster, more accurate, and less likely to result in large "catch-up" payments.
To enroll in Pay-as-you-go, your workers’ comp policy must be $2,500 or greater.
Getting started is simple. Just notify your Pinnacol agent or underwriter that you want to switch to the Pay-as-you-go option. You can enroll at any time, even mid-term.
Please note: While Pay-as-you-go integrates with over 2,000 providers, click this Provider Locator to confirm that your specific payroll provider supports this option.
Take a look at these videos from InsurePay to learn more about Pay-as-you-go.
Don't worry — help is available. Depending on where you are in the process, here’s who to contact:
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