Traditional workers’ comp bills you upfront on a guess: you estimate annual payroll, pay premium on the estimate, and settle the difference at a year-end audit. For contractors with seasonal crews, that guess is expensive in both directions — overestimate and you’ve loaned the carrier money all year; underestimate and the audit bill lands right when winter cash flow is tightest. Pay-as-you-go workers’ comp fixes the math.

How pay-as-you-go works

Your premium is calculated each payroll run from the wages you actually paid, by class code — same rates, same workers’ compensation coverage, different billing. Payroll goes up in June, premium goes up in June. Crew drops to two guys in January, premium drops with it. Most carriers connect directly to your payroll provider or take a simple monthly report.

Why contractors switch

Little or no premium deposit up front — cash stays in the business

Premiums track seasonal payroll instead of an annual guess

Year-end audits confirm what you paid instead of producing surprise bills

Certificates of insurance issue the same day, just like a standard policy

Available in nearly every state we serve

We place pay-as-you-go programs with multiple A-rated carriers across the country — see our New Jersey, Texas, Florida, and California contractor pages, or find your state in the footer below. In state-fund states like Ohio and Washington, comp runs through the state system — we’ll tell you straight what’s possible where you work.

Pay-as-you-go workers’ comp FAQs

What is pay-as-you-go workers’ comp?

Instead of paying an annual premium based on estimated payroll, pay-as-you-go workers’ comp calculates your premium each pay period from the payroll you actually ran. Rates and class codes are the same — the difference is how and when you pay.

Who is it best for?

Contractors with seasonal or fluctuating crews get the most out of it: landscapers, roofers’ subs, framing crews, and any trade that staffs up for the busy season and slims down in winter. If your payroll swings, estimates are almost always wrong in someone’s favor — usually not yours.

Does it eliminate the year-end audit?

No — the audit still happens, but because premiums were based on real payroll all year, the audit typically confirms what you already paid instead of producing a surprise bill.

How do I switch?

Most carriers we work with offer pay-as-you-go through payroll integration or simple monthly self-reporting. We can usually move you at renewal — sometimes mid-term. It takes one conversation to find out.

Get a pay-as-you-go workers’ comp quote — most contractors are quoted the same day.

For the full deep-dive on workers’ comp — costs, class codes, experience mods, and ghost policies for owners with no employees — visit our dedicated site at usaworkerscomp.com.