Pay-by-Pay® Premium Payment Program

You may improve cash flow and save time by integrating your workers' compensation premium payments directly with your payroll.

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Smarter, more efficient workers’ compensation payments.

If you use ADP® for payroll and Automatic Data Processing Insurance Agency, Inc. (ADPIA®) as broker for your workers' compensation coverage, Pay-by-Pay makes premium payments directly to your carrier each time you run payroll. That means:

Improved cash flow

With deposits of 25–100%, combined with limited payment options, traditional workers' compensation premium payments can impact your cashflow.

With ADP’s Pay-by-Pay solution, you may be able to eliminate the upfront binder deposit with most carriers¹, and spread your premium payments across your payroll life-cycle.

Greater accuracy

Pay-by-Pay uses your actual payroll data and carrier rates to help calculate premiums. This minimizes the likelihood of over- or underpayment and helps to minimize the possibility of your company needing to make adjustments at your year-end audit.

More time to focus on your business

With Pay-by-Pay, our affiliate ADP automatically forwards your premiums directly to your carrier for you. You can rest easy knowing your payments will arrive on time — reducing the risk of late payment policy cancellations.

An overall better experience.

In fact, 81% of ADP clients prefer ADPIA® as their insurance broker, and combined with ADP's Pay-by-Pay over their previous broker without a payment plan option.²

Frequently asked questions about Pay-by-Pay

How does ADP's Pay-by-Pay program work?

Each time a client runs payroll with ADP, the premiums for their workers' compensation policy are calculated and forwarded directly to the insurance carrier.

What are the benefits of ADP's Pay-by-Pay?

ADP's Pay-by-Pay automates the payment of insurance premiums, offering clients:

Improved cash flow — since your payments are spread over your payroll cycle
Greater convenience with premium payments made directly to your carrier. This helps to reduce administrative burdens by eliminating the time and guesswork involved in calculating premium amounts.
Accurate accounting with premiums based on your actual payroll data

What are the requirements to participate in ADP's Pay-by-Pay program?

Clients who meet the following criteria are eligible:

Are using ADP Payroll and subscribe to ADP Payroll Tax Filing
Have consistent payroll processing
Hold an insurance policy with an ADPIA participating carrier partner in which ADPIA is the agent of record (excluding Ohio, please see below).

How can I determine the premiums I've paid on my policy?

As an ADP Pay-by-Pay client, you will receive the Pay-by-Pay Premium Report that helps you track your policy premiums. This report is available every time you process payroll and provides a breakdown of premiums paid by employee, class code, and check date, and also gives you a year to date total. Click here for a sample Pay-by-Pay report.

How can I access ADP's Pay-by-Pay Premium Payment Reports?

Since Pay-by-Pay reports contain highly sensitive information such as employee payroll amounts, we offer three secure ways to obtain them:

Via secure email each time you process payroll
Via your payroll platform online processing system, available 24 hours a day / 7 days a week to our RUN Powered by ADP® clients
By contacting our customer service department at 1-800-524-7024, option 3

My business is in Ohio. Can I participate in ADP's Pay-by-Pay program?

Yes. Ohio-based businesses must obtained workers' compensation coverage through the Ohio Bureau of Workers' Compensation (BWC) — but we do offer ADP's Pay-by-Pay service to Ohio clients. This benefit enables the insured to have their premiums calculated on actual payroll runs. ADPIA then remits those premium payments to the Ohio BWC.

How am I billed for workers' compensation insurance if I'm not using ADP's Pay-by-Pay?

Direct billing is an option for clients that prefer to receive a bill for their workers' compensation premiums that come directly from their insurance carrier.

How are premiums calculated?

Carrier rate x Payroll (Per $100) = Premium
This calculation results in your base rate and can be found on the declaration page of your policy.

Why is there a difference between the rate listed on my policy and the rate listed on my Pay-by-Pay report?

Additional factors that can impact your base rate include:

Experience modification
Carrier determined premium discount
Expense constant
State assessments and taxes
Terrorism charge

The above items are factored into your base rate to calculate your net rate. Net rates are used in the collection of premiums via ADP's Pay-by-Pay product.

Why ADPIA? Here’s what our clients have to say…

9 out of 10

clients say they now spend less time managing their workers' compensation policy and premium using ADP's Pay-by-Pay solution.

4 out of 5

clients spend less time on their year-end audit now that they are using ADP’s Pay-by-Pay solution.

4 out of 5

clients agree their annual audit has been easier to manage since using ADP’s Pay-by-Pay solution.

96%

of clients prefer having their workers’ comp premium payments spread across their payroll cycle (vs. having an upfront deposit).

9 out of 10

clients agree Pay-by-Pay has helped improve cash flow for their business by spreading premium payments across their payroll cycle.

Internal survey of 697 ADPIA clients in 2022 that use ADP’s Pay-by-Pay® Premium Payment Program to calculate and process their workers’ compensation premiums.

¹While premium deposits may be eliminated by most carriers, mandatory state assessment fees may be required in some states.

²Based on internal study of ADP Payroll clients using RUN powered by ADP®, ADP’s Pay-by-Pay® Premium Payment Program, and a workers’ compensation policy brokered by ADPIA