Workers compensation policy premiums are usually based on estimated payrolls. The final earned premium is determined during a premium audit after the policy expires and is based on actual payroll. When payroll is higher than estimated, the employer owes additional premium, and when payrolls are lower than estimated, money is returned. In current economic conditions, many employers’ payrolls are declining, so an employer may be paying higher than necessary monthly installments due to an overstated payroll estimate at the inception of the policy.
View the full blog at http://workcompedgeblog.com/In these challenging times where cash flow is king, employers might want to consider another work comp insurance option known as Pay-As-You-Go.
