Understanding Workers' Compensation Insurance with ADP
In this discussion with Dave Bevin from ADP, we explore how their integrated solution simplifies workers' compensation insurance by bundling it with payroll. Traditional workers' comp processes often involve challenges like inaccurate payroll estimates, annual audits, and upfront payments. ADP addresses these issues with a pay-as-you-go model that reduces audits and eliminates down payments when bundled with their payroll services.
Key insights include:
- Shop for Better Rates: Most states allow businesses to shop for competitive workers' comp insurance through national carriers, avoiding reliance on state funds.
- Industry-Specific Rates: Workers' comp rates are determined by a four-digit classification code based on employee roles. ADP works with 14 A-rated national carriers to secure competitive rates.
- Flexibility: You can use ADP's workers' comp services without payroll, though benefits like pay-as-you-go and audit reductions apply only to integrated solutions.
- Scalability: The pay-as-you-go system adjusts premiums based on real-time payroll changes, avoiding surprises at year-end.
If you're looking for cost-saving opportunities and streamlined processes for workers' comp insurance, consider leveraging ADP's technology and extensive carrier network.
Tax law changes often. This is general information, not advice for your specific situation. Talk with us before you act on it.