MOUNTAIN VIEW Market Watch Nov 20 – Intuit Inc. has signed a definitive agreement to acquire privately held Prestwick Services, a subsidiary of Prestwick Holdings a Sudbury, Mass. based leader in payroll based billing and payment solutions for the workers’ compensation industry.
Traditional workers’ compensation plans involve large pre-payments based on estimates, with the potential for substantial extra payments at year-end audits. With the acquisition of Prestwick Services and its TRUPAY(TM) technology, Intuit will open the platform that enables workers’ compensation insurance premiums to be calculated in real-time, based on actual payroll, and will not require small business owners to switch insurance carriers or agents.
For a small business owner, pay-as-you-go workers’ compensation has several benefits, including:
- Stronger Accuracy – Premiums are calculated every pay period instead of estimated at the beginning of the year, so payments are adjusted as employee changes occur, virtually eliminating surprise payments at year end audits.
- Available Cash flow – No more hefty lump sum pre-payments means more flexibility in cash flow and paying only for changes as needed.
- Convenience – Automatic collection of premiums means no extra legwork, fewer late payments and one less thing on the to-do list.