Why Does Pay-As-You-Go Help Reduce Audit Variance?

One benefit of the Pay-As-You-Go program is that payroll information is reported throughout the policy term rather than relying primarily on estimated payroll amounts. As payroll information is collected more frequently, premium calculations can better reflect actual payroll activity during the policy period.

What Is Audit Variance? Audit variance refers to the difference between premium charged during the policy period and the final premium determined during the premium audit.

Pay-As-You-Go uses payroll data reported throughout the year, policyholders may experience smaller premium differences when the audit is completed.

Will I still receive a premium audit?

Yes. Participation in the Pay-As-You-Go program does not replace the premium audit requirement. 

Does Pay-As-You-Go guarantee no additional premium?

No. Final premium is still determined through the audit process and policy terms.