You may improve cash flow and save time by integrating your workers' compensation premium payments directly with your payroll.
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:
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.
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.
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.
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
Each time a client runs payroll with ADP, the premiums for their workers' compensation policy are calculated and forwarded directly to the insurance carrier.
ADP's Pay-by-Pay automates the payment of insurance premiums, offering clients:
Clients who meet the following criteria are eligible:
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.
Since Pay-by-Pay reports contain highly sensitive information such as employee payroll amounts, we offer three secure ways to obtain them:
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.
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.
Additional factors that can impact your base rate include:
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.
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.
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.
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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