Worker’s Comp in NJ. Who’s got it and who do you use?

[fastbub]

I am going into my 3rd year state assigned risk pool or whatever. Essentially I had to guess payroll for first year and pay that all up front. For the first two years that worked out fine. This year we got way busier and had way more payroll. I knew I was over my estimate by a lot and I contacted my agent a few times to see if I could pay in some more along the way. She said no, have to wait for the audit. Now I am going to have to end up paying the difference for last year AND the whole lump sum for this year to renew. That is a HUGE $$$$$$$ hit.

Thanks for reading this long rant. Anybody encounter the same? What did you do?
I cant imagine people who have 10 guys are paying the entire year of worker’s comp up front. BTW we have no claims this whole time.

Don’t really feel like going out of business right now. I kind of like feeding my family.

 

[iSlayGiants]

Buying insurance is always gambling with really bad odds; otherwise the insurance co couldn't stay in business...

In other words: the lottery is a tax on people who don't understand math.

 

[southsoundtree]

Sounds like a bidding and budgeting issue, not a WC auditing issue, TBH. You had extra money available to use, rather than having to pay it earlier.

If you have 10 employees, you need to be generating the same way, just on a larger scale, like 5x's what it would be if you're a two-person operation. You will be bringing in more money, like hopefully 5x's the amount.

Seems proportional, to me.

$0.02

 

[flyingsquirrel25]

PA isn’t much different except you need to pay a chunk up front and then they allow for payments (4 or 10 I think) for the rest. I have an account that I siphon money off into (its online so it’s really easy) that I call my tax account. This is so I know I have the money for estimateds, an end of year tax lump or insurances. When making decisions about purchases I only look at the operating account and don’t mess with my reserves. And if the op acct is ok when taxes or ins are due I pay it from there making it even easier to grow that reserve.
It’s all in how you budget and squirrel away the money. But eventually someone will want a piece of it and you need to dip in!