Pay as you go workers compensation?

I received some literature from a local payroll company and one of the bulletin points caught my eye - pay as you go workers compensation. From what I know my state sets the workers compensation guidelines and limits as to what insurance companies can charge me and when. Can anyone tell me how this works? Pros and cons?

We looked at that from Paychex. It looked nice. They took out your insurance premiums each payday. The rate was the same so we didn’t see the need to change. In California the rate is right about 8.5% to start. The insurance company can modify that if the feel you are high risk or low risk. They can also give you a discount you have a large account and its easy to manage. We currently pay a higher rate modification because we had a fake claim filed against us that went to court. Even though we prevailed they upped our rate 50% to 13%. Then they gave us a 40% discount to bring it back to 7.5%. Go figure.

Thanks Pirate. In the scenario you looked at, would Paychex be the actual insurer?

Paychex would contract it out. Where they would make money is in volume, I am sure they have a contract with one Of The Comp providers.

what % are you guys getting charged?

Thanks! We are small, unpredictable so this might be a decent option for us as long as it isn’t being marked up.