Traditional Deposit vs PEO: Direct Comparison
Workers Comp With Deposit vs No Deposit PEO — Florida 2026
| Factor | Traditional Policy | PEO (Comp Ninjas) |
|---|---|---|
| Upfront deposit | 25–33% of annual premium | $0 (only $875 setup fee) |
| Annual audit | Yes — may result in additional charges | No — pay on actual payroll |
| Time to get COI | 3–10 business days | Same business day |
| Hard-to-place accepted | Often declined | Yes — roofing, towing, ag, staffing |
| New businesses | Often declined or JUA only | Yes — day 1 coverage |
| High X-Mod accepted | Often declined above 1.25 | Yes — X-Mod not a factor |
How No-Deposit PEO Workers Comp Works
When you enroll in the Comp Ninjas PEO program, your workers become co-employees of the PEO. The PEO carries the master workers comp policy — not you individually. Because the PEO already has an established policy with the carrier, there is no deposit required to add your workers to the group.
Premium is calculated each payroll cycle: (payroll for the period × class code rate) ÷ 100. If you run weekly payroll for 5 roofers at $700 each ($3,500 total), your weekly workers comp premium at the 5551 rate ($6.75/$100) would be approximately $236. You pay this with each payroll run — no lump sum, no deposit, no year-end audit.
The only upfront cost is the $875 one-time setup fee, which covers account setup, initial payroll processing, and same-day COI issuance. This is not a deposit — it does not apply to future premiums.
Frequently Asked Questions
Does no-deposit workers comp exist in Florida?
Yes. Through the PEO (Professional Employer Organization) program at Comp Ninjas, you can get workers comp with zero upfront deposit. Instead of paying a 25–33% deposit on your estimated annual premium, you pay premium each payroll cycle based on actual payroll. This completely eliminates the deposit requirement.
Why do traditional workers comp policies require a deposit?
Traditional carriers estimate your annual payroll and calculate the total premium. They then require a deposit — typically 25–33% — to ensure you will pay the full premium. If your actual payroll is higher than estimated, they conduct an audit at year-end and bill the difference. With PEO, there are no estimates — you pay based on actual payroll each cycle.
How much is a typical deposit on a traditional policy?
It depends on your industry and payroll. For a construction contractor with 5 employees earning $700/week, annual payroll would be approximately $182,000. At a rate of $8/$100, the annual premium would be $14,560. The typical deposit would be $3,640–$4,800 (25–33%). With PEO, that deposit is $0 — you only pay the $875 setup fee.
Is PEO workers comp more expensive than a traditional policy?
Not necessarily. The rate per $100 of payroll is similar or equal. The main difference is that with PEO there is no deposit and no annual audit. For many small contractors, PEO is actually cheaper because it eliminates the opportunity cost of the deposit (money that could be used for materials or equipment) and removes the risk of an unexpected year-end bill.
What is the $875 setup fee?
The $875 setup fee is a one-time charge to join the PEO program. It covers account setup, initial payroll processing, and issuance of your first COI. It is not a deposit — it does not apply to future premiums. It is simply the cost of setting up your account in the PEO system.
Can I get no-deposit workers comp with a bad loss history?
Yes. The PEO evaluates risk differently than traditional carriers. A high experience modification rate (X-Mod) that would disqualify you from a standard policy does not disqualify you from the PEO. The PEO is specifically designed for high-risk industries and businesses with difficult loss histories.
How does premium payment work with PEO?
With PEO, workers comp premiums are calculated each payroll cycle. If you run weekly payroll, you pay workers comp weekly. If you run bi-weekly payroll, you pay every two weeks. The amount is calculated automatically: (period payroll × class code rate) ÷ 100. No estimates, no year-end adjustments.
Can I cancel the PEO if I find a cheaper traditional policy?
Yes. You can cancel the PEO program at any time. However, to obtain a traditional policy without a deposit in the future, you will need to demonstrate continuous coverage history — which the PEO provides. Many PEO clients use it as a bridge until they qualify for a standard policy with better terms.