Pay-by-Pay® Premium Payment Program

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.