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In the residential cleaning industry, it is difficult for many business owners to anticipate payroll 12 months ahead of time. It provides employees with coverage for some lost wages and medical costs that accrue from injuries occurring on the job.
Now, in the residential cleaning industry, it is difficult for many business owners to anticipate payroll 12 months ahead of time. It allows employers to pay their insurance premiums monthly instead of in one large sum. Normalize Your Cash Flow Cash flow is important for any business, especially residential cleaning businesses. Depending on your state, industry and the revenue of your business, this means a savings of several hundred if not thousands of dollars in up-front costs and allows your business to free up necessary cash for more immediate needs.
For growing maid services that are starting to bid on bulk-unit contracts, the benefits are even greater. If your business gets the contract, then your payroll may be significantly higher than if you do not. This is a great option for the residential cleaning industry because it allows them to pay a higher or lower premium each month based on their workload. If your business deals with irregular workloads, then Pay-as-You-Go may be a great option for helping you keep business costs in check.
Audits are done typically when the insurance carrier has reason to believe there is the possibility of over or underpayment of premium. Because the payroll and premium payments are automated monthly, there is less risk of over or underpaying the premium. This can eliminate the need for more than your annual audit. Lowering up-front costs, allowing monthly payments based on payroll and preventing audits seem to be three benefits that clients frequently rave about.
The next time you are up for a renewal of your policy, Pay-as-You-Go is something you should strongly consider. View Larger Image. Related Posts. October 22nd, October 18th, September 28th, July 28th,