Frequently Asked Questions

Answers to the questions we hear most.

Managing your workers’ comp premiums can feel overwhelming. That’s why we make it simple. Explore answers to our most common questions and discover how RPM helps you save time, stay compliant, and avoid costly surprises.

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FAQs

  • What is Pay As You Go workers’ comp?

    Pay As You Go (PAYGO) workers’ compensation is an insurance payment model where a business’s premiums are calculated based on actual, real-time payroll wages, rather than an annual estimation, reducing the risk of a large, unexpected bill at the end of the year.

  • How does RPM’s Pay As You Go service help my business?

    We simplify workers’ compensation insurance through a flexible, “pay as you go” model that works with any payroll provider. Instead of estimating payroll and paying premiums upfront, we calculate and collect accurate premiums for you, each time your payroll is run – whether weekly, biweekly, or monthly. This precise payment and improved cash flow management system means you only pay for exactly what’s owed, exactly when it’s owed.

    Because we connect directly with the policyholder’s (insured’s) payroll provider, we can calculate, collect, and remit work comp premiums to carriers. This minimizes costly audit surprises at the end of the year and helps policyholders avoid administrative headaches. Plus, there’s no need to switch providers. Our service can be integrated with over 100 carriers and any payroll provider, giving you more flexibility.

  • Are there any hidden costs with RPM Pay As You Go?

    With our service, what you see is what you get. After an initial one-time setup fee, there are no hidden costs. We charge policyholders a flat fee per payroll run (weekly, biweekly, or monthly). The rest is just simple, accurate premiums based on real-time calculations.

  • What is a payroll report?

    A payroll report is a document that summarizes employee pay information during a specific period, including wages, taxes, deductions, and benefits.

  • What is workers’ comp?

    Workers’ compensation is a type of insurance that provides wage replacement and medical benefits to employees who are injured or sick due to something that happened at work. Employers are usually required by state law to carry workers’ compensation insurance, making it mandatory in most industries. If you need guidance with workers’ comp insurance Pay As You Go services and the audit process, our specialists are ready to help. Simply fill out our online form or call 320-203-0700.

  • How are workers compensation premiums calculated?

    Workers’ compensation premiums are calculated using your payroll, your employees’ classification codes, and your carrier’s rate for each job type. Class codes group employees by the type of work they do, and each code has a risk-based rate. Higher-risk jobs cost more, lower-risk jobs cost less.

    Your premium is then adjusted by your experience modifier (MOD), which reflects your past claims history. A MOD below 1.0 lowers your premium, while a MOD above 1.0 increases it.

    Traditional policies use estimated payroll, while PAYGO bases premiums on actual payroll, helping reduce audit discrepancies.

    Need more help? Simply fill out our online form or call 320-203-0700 to chat with our expert team!

  • How do I reduce workers' compensation costs?

    You can reduce workers’ compensation costs by maintaining a safe workplace, managing claims efficiently, and keeping accurate records. These practices help improve your Experience Modification Factor (EMOD), which reflects your past claims history. A MOD below 1.0 lowers your premium, while a MOD above 1.0 increases it.

    While this isn’t an area RPM directly manages, our resource hub helps with insights on best practices, tips, and guidance from the insurance industry.

  • What are workers’ comp class codes?

    Workers’ comp class codes are numeric identifiers used by insurers to classify different types of jobs based on their level of risk for workplace injuries. Higher-risk jobs cost more, lower-risk jobs cost less. RPM experts can work with you to classify your employees correctly to avoid costly errors at audit time.

  • What’s an average workers' comp premium?

    Premiums vary widely depending on your industry, payroll size, location, job-risk classification, and claims history.

  • What is a workers' comp audit?

    A workers’ comp audit is a mandatory review of your business’s payroll and operations after the policy period to ensure the premiums match its actual exposure and risk. They’re required by law to protect employees. To learn more about workers’ comp audits, contact one of our experts today at 320-203-0700.

  • How does an Audit Review from RPM help my business?

    Workers’ comp audits can be stressful and confusing. Auditors are often looking at your account for the first time, missing critical context. If you’re an RPM client, we already know your business, so we’re a step ahead when audit season comes around. During the review, our team gathers and provides reports to streamline the audit process. You’ll get the accuracy you need, with none of the stress.

    If you’re an insurer, we can help you collect audit balances by breaking them into more easily managed payments for your clients. If you’re a business owner or policyholder, we give you a flexible payment option so you don’t have to suddenly come up with a surprise lump sum of money. We’ll also review auditor findings and advocate for policyholders if discrepancies are found.

  • How do I prepare for a workers’ comp audit?

    It’s really simple. We offer our Audit Review service to our policyholders at no additional cost. Once you send your audit notice, our team will gather everything we need to prepare your audit review and will reach out if we need anything else from you.

  • What happens if I don't do a workers’ comp audit?

    Workers’ comp audits are mandated by law. Without completing a workers’ comp audit, your carrier may issue an estimated premium that’s often higher, issue penalties, or may even cancel your coverage. Audit penalties are additional premium charges, policy cancellation, non-renewal, estimated premiums, or even legal action if your business fails to comply with an audit.

  • What payroll is included in a workers' compensation audit?

    A workers’ compensation audit includes all payroll paid to employees for work performed during the policy period. The types of payroll included depend on many factors, including which state you’re working in, policy exclusions and endorsements, and state-specific caps. Our workers’ comp experts can help answer any payroll questions you may have. Simply fill out our online form or call 320-203-0700.

  • How does RPM reduce audit surprises?

    Our specialists eliminate surprises by verifying all payroll, class codes, and exclusions throughout the policy lifecycle. Your business is complex, and things change. RPM can help make sure you’re covered by alerting you when, for example, an endorsement is needed. That way any changes are captured on an ongoing basis, helping minimize balances due at the mandatory term-end audit.

  • Why does my business need an audit review?

    Most workers’ comp policies require an audit. Carriers work with auditors to ensure compliance. RPM customers have access to our professional review service to help them prepare and understand results. While audit balances are rarely zero, RPM Pay As You Go is designed to keep them as close to zero as possible.

  • How does RPM ensure my data is protected?

    All payroll, employee, and payment data is encrypted to the highest industry standards. Every transaction is protected with encrypted systems and clear reporting. These systems and strict access controls keep your data secure.

  • How do I get in touch with RPM for support?

    Simply fill out our online form and we’ll get back to you as soon as possible, or call 320-203-0700 to speak with our friendly, knowledgeable team. No automated bots, just real people ready to help with workers’ comp premium management.

  • How fast are your response times?

    At RPM, you come first. We aim to respond to most inquiries within 48 hours, with additional hands-on support when you’re navigating audits, payment changes, or other complex workers’ comp matters. You’ll also find extensive self-serve resources on our website, including our FAQ page. If you need urgent assistance, a quick call at 320-203-0700 will always connect you with a real person.