ADP Pay-by-Pay® Premium Payment Program for Workers’ Compensation for Small Businesses
Managing workers' compensation premium payments is a complicated, manual and lengthy process. Traditional programs require large up-front premium deposits, typically 20 - 100% of the policy term. Premium payments are based on estimated payroll which can result in costly year-end audits and the manual administration is very time consuming.
ADP's Pay-by-Pay Premium Payment Program for Workers' Compensation allows you to change the way you manage your workers' compensation premium payments. It is a simple, effective and convenient service which helps to improve cash flow and eliminate the confusion associated with managing workers’ compensation premium payments.
With Pay-by-Pay, premium payments are based on actual, not estimated, payroll data and rates set by the insurance carrier. Premiums are paid on a monthly basis, eliminating the need for a large up-front deposit that can be a financial burden to small and mid-size businesses.
Ask yourself these questions:
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Would you like to improve your company cash flow and spread out your workers' compensation payments over each payroll period?
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Would you like the ability to base your workers' compensation premiums on your exact payroll and actual carrier rates in order to lessen the impact at the year-end audit?
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Would it be more convenient if your premium was calculated and deducted automatically each payroll period?
If you answered "YES" to these questions, then ADP’s Pay-by-Pay Premium Payment Program for Workers’ Compensation is just what you’ve been looking for.
Benefits:
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Helps eliminate large upfront premium payments*
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Minimizes over- and/or under-payments with premiums based on actual carrier rates and actual, not estimated, payroll data
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Reduces the impact at year-end audits
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Decreases the risk of late payment policy cancelations because ADP pays the carrier directly on your behalf
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Provides access to a responsive client service team
Reporting - Pay-by-Pay Premium Report
The Pay-by-Pay Premium Report is a convenient, online, management report available to you at no additional cost, each time you run payroll.** The report is broken down into three pages:
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Current Payroll Data includes policy information, employee level payroll wage data, rates and premiums by employee, policy YTD wages and premium, and more.
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Monthly Summary includes Policy YTD Summary of activity by state which is useful in helping your business track expenses by month - also provides YTD figures that can be used for the final audit of your policy if requested by the insurance carrier.
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Employee Catch Up Detail will print with your normal Pay-by-Pay report when and if "Catch Up" is processed by ADP. Catch Up premium is calculated when the effective date of your Workers' Compensation Policy is before you joined the Pay-by-Pay Program.
*While premium deposits may be eliminated, mandatory state assessment fees may be required in some states.
**The Pay-by-Pay® Premium Report contains confidential employee payroll information. It is available only to the contact you have provided for workers’ compensation. The contact you have identified may be changed at anytime by calling ADP Insurance Services customer service center at 800-524-7024 from 8:00a.m.-8:00p.m. (EST).
This material covers the offering of the Pay-by-Pay payroll feature of ADP's payroll processing services and does not involve the offer or sale of any insurance product. Some products may not be available in all states. Clients must be using ADP tax filing service to take advantage of the Pay-by-Pay Program. All insurance products will be offered and sold only through Automatic Data Processing Insurance Agency, Inc., its licensed agents or its licensed insurance partners. CA license 0D04044.
Interesting in learning more? Contact us or call 1.800.CALL.ADP, ext 411 (1.800.225.5237, ext.411).