What is PrecisePay?
PrecisePay is EMPLOYERS’ pay-as-you-go billing system. It allows policyholders to make smaller, more frequent premium payments by paying a portion of their annual premium each payroll period. PrecisePay calculates the workers’ compensation premium amount based on the payroll figures and assigned classifications submitted to EMPLOYERS each time payroll is processed and reported. State-mandated assessments, taxes and surcharges are collected in the first premium deduction for the policy.
What are the benefits of using PrecisePay?
- Improves cash flow – no down payment and premium is paid in smaller, more frequent increments each time payroll is processed and reported.
- Saves time – there are no checks to write since premium payments can be automatically deducted from the policyholder’s bank account each payroll period.
- Minimizes audit variances – premium is calculated and deducted based on actual payroll at each pay period. This minimizes the risk of large audit variances at the end of the policy year.
- 24/7 online access – our web-based system is available for reporting payroll information and viewing premium and payroll details on previously-submitted information.
Do policyholders need a payroll company to participate in the PrecisePay program?
Policyholders do not need a payroll service provider to use PrecisePay for payroll reporting. Payroll information can be reported to EMPLOYERS directly by the policyholder.
Who is responsible for submitting payroll information to PrecisePayfor processing?
It is the policyholder’s responsibility to provide payroll information through PrecisePay. If the policyholder is working with a payroll service provider, EMPLOYERS will coordinate with them to receive payroll information. However, in the event the payroll service provider cannot or will not provide the necessary information to the PrecisePay system, the policyholder is responsible for its delivery.
How is payroll information submitted to PrecisePay?
PrecisePay accepts payroll information through a secure, online website by using any of the three following methods:
- Upload a file from the payroll service provider’s system.
- Complete and upload an interactive Excel template provided by EMPLOYERS.
- Manually enter the information.
How often must payroll information be provided to PrecisePay?
Payroll information must be provided to PrecisePay each time a policyholder’s payroll is run.
How is the workers’ compensation premium paid to EMPLOYERS?
Each time PrecisePay receives payroll information from the policyholder or their payroll service provider, the workers’ compensation premium is calculated for the pay period reported and the insured’s designated payment method is charged. Premium for the pay period is due immediately and automatically deducted from the policyholder’s bank account when due.
What if the policyholder does not report their payroll or pay their premium when due?
The payroll due date is chosen during the registration process and is based on the insured’s payroll frequency. The due date can be found on the PrecisePay dashboard screen. If the policyholder does not report payroll by the due date, premium for the period is calculated based on the estimated annual premium amount and the scheduled reporting frequency. If there is any discrepancy between the estimate and the actual payroll, the proper adjustment will be made during the final premium audit process at the end of the policy period. Failure to pay premium when due may result in cancellation of the policy in accordance with EMPLOYERS normal cancellation procedures and state law.
If payroll is reported at each pay period through PrecisePay, does this mean there will be no need for a premium audit at the end of the policy term?
Premium audits are performed on all policies. A benefit of PrecisePay is that it may minimize the amount of an audit adjustment. However, missing payroll information or misclassifications may still occur during the policy period, resulting in an audit adjustment after the premium audit.
What is required to participate in the PrecisePay program?
The policyholder must:
- Authorize automatic transfers from a bank account.
- Keep bank account information current within the PrecisePay system.
- Submit payroll information each time payroll is processed. Failure to report payroll or pay premium when due may subject the policy to EMPLOYERS cancellation procedures, in compliance with state law.