Customers on our SAIFPlus product pay workers' compensation premiums in one or more installments spread throughout the policy year. For these customers, workers' compensation premium payments are calculated differently from most other types of insurance.
For example, auto insurance policyholders generally pay a fixed premium based on several factors, including the age and type of the vehicle. The premium remains fixed unless the owner moves to a different territory with a different rate or replaces the car with a newer model having a different rate.
If you are a SAIFPlus customer, paying a workers' compensation insurance premium is similar to paying income taxes. You pay premium based on estimated payroll, but actual premium can't be calculated until you report your actual payroll for that policy period.
Before the policy period begins, SAIF calculates an estimated premium based on your estimated payroll. That total is divided into installments and billed regularly throughout the policy period and doesn't vary unless you report to us a change (increase or decrease) in estimated payroll.
SAIF will use this information to adjust your estimated premium and your installments to more accurately reflect the expected premium due. Then, when your policy period ends, SAIF will ask you to report your actual payroll for the entire policy period (usually one year). We will calculate the premium and compare the actual charges to the estimate. Any difference from the reconciliation will be debited or credited to your account.