Why Pay-as-you-go Workers’ Compensation is the

Right Fit for You and Your Clients


Written by Jeff Harris

Pay-as-you-go is defined as paying for expenditures as they occur or are used.  In most aspects of our daily lives, we pay for goods and services as needed.  Given the choice, I believe everyone would prefer to utilize a pay-as-you-go model for insurance, utilities, phone service or even gasoline.  I have yet to find anyone willing to prepay for their gasoline a year in advance and then true up with Exxon or Mobil at the end of twelve months.  This may be an extreme example, but it’s a very valid point.         


If you are passionate about growing your business and building lasting relationships with your clients, understanding pay-as-you-go workers’ compensation is critical in today’s competitive environment.  The traditional method of estimating payroll and making estimated premium payments is quickly being replaced by payroll integrations and automated premium calculations.  PayGo, TravPay, PayOwe, PrecisePay, Exact Pay and other proprietary branded programs are replacing snail mail and the need to write checks.


Workers’ compensation is a requirement in all states and as a trusted advisor your role is to provide your clients with value added services to differentiate yourself.  Pay-as-you-go eliminates or reduces down payments. It also spreads payments over 12, 24, 26 or 52 weeks using your actual payroll schedule and figures - minimizing the risk of unexpected premiums due at audit.  



If you have been involved in a final premium audit, it’s clear that workers’ compensation and payroll are the perfect match.  Offering your clients premium audit services and true pay-as-you-go is now expected by most business owners and Cennairus is here to help.  We work with thousands of insurance agents and are the partner provider to 20 State funds or assigned risk pools.  With over 30 insurance carriers, we can place almost any type of industry.  Our underwriting and servicing teams are well trained and can guide you every step of the way. 


Reach out to your local Payroll Vault office to learn more about pay-as-you-go workers' compensation and how it could benefit your company. 

Jeff Harris is the President of Cennairus and has been involved in the design and development of several leading payroll-based billing systems.  Cennairus is a leading provider of pay-as-you-go workers’ compensation throughout the country.