State-mandated insurance covering medical expenses and lost wages for employees injured on the job. Workers comp premiums are based on payroll and job classification codes but are not a payroll tax -- they are an insurance expense.
Why Workers Compensation matters for employers
Workers compensation premiums are calculated by applying state-specific classification codes to payroll amounts. Higher-risk job classifications (roofing, logging, construction) carry higher premium rates than lower-risk classifications (office, clerical). Payroll accuracy directly affects workers comp premium calculations -- overstating payroll leads to overpayment, and audit adjustments at policy renewal can result in significant premium credits or additional charges.
Failure to carry workers comp coverage in a state that requires it exposes the employer to significant penalties, unlimited liability for injured employee claims, and in some states, criminal charges. BEG does not provide workers comp coverage but ensures payroll records are accurate and organized for policy audits.
How BEG handles Workers Compensation for clients
BEG Managed Payroll handles Workers Compensation as part of a fully managed payroll service at $25-$45 per employee per month. Clients do not need to track compliance rules, filing deadlines, or calculation methods related to Workers Compensation on their own. Everything is included. Learn about BEG Managed Payroll.
Frequently asked questions
Do employers have to manage Workers Compensation themselves?
No. A managed payroll provider handles Workers Compensation as part of full-service payroll. BEG manages this for clients at $25-$45 PEPM with no system migration required.
What happens if Workers Compensation is handled incorrectly?
Errors related to Workers Compensation can trigger IRS penalties, state agency assessments, or employee disputes. Catching and correcting errors before filing is far less costly than after-the-fact corrections.
How does BEG handle Workers Compensation for managed payroll clients?
BEG tracks, calculates, and remits everything related to Workers Compensation as part of fully managed payroll. Clients do not need to monitor compliance -- that is included in the service at $25-$45 PEPM.
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About the author
Anthony Moretti is VP of Sales at Business Executive Group, where he builds BEG's managed payroll and HR service verticals for employers across Dallas-Fort Worth and nationwide. He writes the BEG Payroll Glossary to give employers plain-English answers on payroll and compliance.
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