In this Blog we will talk a little about workers compensation. First off, you might ask “what is workers compensation?” Or you might wonder if it is something that you need. Well, to start, Workers compensation insurance is a form of insurance that provides compensation medical care for employees who are injured in the course of employment, in exchange for mandatory relinquishment of the employee’s right to sue his or her employer for the tort of negligence.
Next you might ask “do I need it?” If you have employees, then the safe answer is yes. However there are states that do not require employers to have workers compensation. One state for sure is Texas. I am not exactly sure if there are others. If you know if any please chime in.
Ok, so enough about that. What does all this have to do with Sequoia Payroll Solutions? SPS has recently teamed up with The Hartford insurance group to bring our customers Xact-Pay. The Hartford was one of the first national carriers to offer a payroll premium billing solution for workers compensation 10 years ago. Today the Hartford is the largest provider of these services with over 65,000 insured small business clients.
Traditionally, insurance companies make employers pay an up-front premium at the beginning of each new policy year. The up-front cost could be up to 25% of the yearly premium. I have seen these premiums, and depending on the industry your in, yearly costs can easily be over 20k per year. In a case such as this, you would have to fork up 5K just to make the policy effective. Ouch. With X-act Pay, employers won’t have to come up with that kind of money. X-act Pay is deducted on a pay period basis. There are many advantages to this method of payment. Obviously it’s a whole lot easier to manage workers comp premiums one pay period at a time instead of large lump sums. Another benefit is no more check writing. The amount is withdrawn from your account automatically, so this saves you time, money and eliminates late fees. Amounts paid are based on the payroll so payments will always be accurate. In turn, the chances of a workers comp audit decreases dramatically. This service is offered by our payroll service to employers for the small fee of 10.00 per month (on top of premium amounts). 10 bucks is a small price to pay to alleviate the time, guesswork, and hassle of workers compensation premiums. This excellent service is just another reason why Sequoia Payroll Solutions is taking your business to new heights!
And now for a disclaimer:
XactPAY® is a registered trademark of The Hartford and used herein with permission. Our payroll services are paid a royalty fee by The Hartford in connection with the XactPAY® program described herein. Our payroll service is not a licensed insurance producer or agent of The Hartford and, as such is not authorized to solicit, sell or negotiate any insurance products offered by The Hartford. The Hartford insurance products are sold through licensed producers or independent agents of The Hartford.
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