Does pay-as-you-go cost more?

It should not, and where it does the difference is usually a service fee rather than the insurance. Ask for the premium and any fees as separate numbers before comparing it to anything.

Do I still get audited?

Yes, and that surprises people. The audit still happens at the end of the term — it simply finds less, because you have been reporting actual payroll all year instead of one estimate made twelve months ago.

Can I get it without changing payroll providers?

Usually yes. Many carriers integrate with the common payroll platforms directly, and several will take a simple payroll report each period without any integration at all.

What is pay-as-you-go workers comp, and do I need a payroll company for it?

It calculates your premium from each payroll run instead of from an estimate, so you pay for the wages you actually paid. You do not need a payroll company to get it — a lot of ordinary carriers offer it, which matters because it is the main thing bundled programs are sold on.

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Tell us the situation.

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The detail

A traditional workers compensation policy is priced on estimated annual payroll, collects a deposit up front, and reconciles the difference at audit. Pay-as-you-go reports actual payroll each period instead.
Boring Insurance Agency

What this means for you

The cash flow benefit is real, particularly for a seasonal business or one that is growing — you stop financing a deposit calculated on a guess.
The audit gets smaller rather than disappearing. There is still an audit; it just has less to find, because the reported payroll has been tracking the real one all year.
Ask your carrier before you assume you need a payroll provider for it. If you have one already, they may bill this way and nobody has mentioned it.
A growing business benefits most. Premium that tracks payroll upward is far less painful than the one-payment audit bill that lands after a year of growth.

Need this handled?

Your insurer makes the filings, and getting them made on time is our job — the right carrier, the right form, and somebody chasing it until the regulator shows it active. We also place the accounts other brokers decline: lapsed authority, claims history, new ventures. Tell us the situation and a licensed human replies the same business day.