Do You Have an Effective Pay by Payroll Program in Place? 3 Questions to Ask to Get the Answer You Need
Who should switch to pay by payroll?
Worker’s compensation coverage isn’t cheap, but using a pay by payroll program helps balance your budget effectively. Monthly or yearly payments introduce accounting errors many businesses can’t weather alone. New systems can help. Before ignoring these helpful new solutions, ask yourself the following questions:
How much am I overpaying or underpaying each year?
In a typical setup, a company pays an estimated amount for worker’s compensation coverage at the start of the year, but depending upon how much their employees make, their actual costs may be much different. At the end of the year, when all of the totals are righted, you could wind up owing a significant amount of money. You could also wind up owed money that could have been spent on expanding your business. Pay by payroll allows you to pay exactly what you owe with each payroll you process, so that you’re never falling behind or doing without unnecessarily.
How many hours are spent calculating these payments each year?
A pay by payroll system is established to automatically tabulate how much you owe, remove it and pay it before any deadlines are close to passing. The same isn’t true for the traditional model. In fact, you could be wasting a lot of money hiring someone for tallying these amounts at the end of the year. By utilizing the newest technology available, a program can figure these amounts for you, even if you opt to retain control over when and how the amounts are paid. At the end of the year, it’s a small matter of running the right reports and ensuring their totals match. Hours of grueling, frustrating work can be scaled down to a matter of minutes that no one is spending wringing their hands. It’s a fast, easy and straightforward answer to the confusion worker’s compensation often adds to your business.
What is the cost and quality of coverage I’m investing in now?
The worker’s compensation plan you choose for your business can affect you in a number of significant ways. Cost isn’t the end-all of coverage, but it makes a big impact on your daily operations. The ability to safely cut those costs is always worth checking out. Working with a PEO on a pay by payroll plan may make you eligible for tapping bulk-rate coverage limits.
Still, quality is more important. A bad plan, even if it’s very inexpensive, can wind up costing you big time in the long run. Your workers’ satisfaction, loyalty, and trust – along with your reputation can get tarnished quickly if your employees aren’t cared for in a timely manner. What is the rate of refusal for the company you work with? How do they determine the amount of coverage, settlements or other financial issues? How easy is it to file a claim and follow up to see how it’s progressing? What options are available for workers who get turned away? Even though worker’s comp is protection for you, it’s protection for your employees first and foremost.
Stay focused on quality, but check out your affordable options as well. Click to get all the latest and most reliable information on pay by payroll by subscribing to our free newsletter.