This type of workers’ compensation insurance allows businesses to pay premiums based on actual payroll rather than estimates. With pay-as-you-go workers’ comp, premiums are calculated and paid in real-time, aligning with payroll cycles. This approach helps improve cash flow, reduce the likelihood of large audit adjustments, and ensures accurate premium payments. It’s particularly beneficial for businesses with fluctuating payrolls or seasonal workers, as it provides a more manageable and precise method for handling workers’ compensation insurance costs.