ADP and worker's comp offer

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ilan1h
Posts: 803
Joined: Mon Oct 22, 2007 3:40 pm

ADP and worker's comp offer

Post by ilan1h »

Just wondering if anyone has had any experience with ADP worker's comp. They offer the advantage of a pay as you go kind of program whereby you pay exactly what you need to without doing a year-end audit (as with other carriers). However, they are promoting it so aggressively I just get the feeling that there must be a problem with it. Any advice appreciated.
123
Posts: 6387
Joined: Fri Oct 12, 2012 3:55 pm

Re: ADP and worker's comp offer

Post by 123 »

Since it's sold as a convenience it may not be as competitive on price as another insurer. Of course a lot depends on the state involved as well the particular number and job class(es) of employees you have.
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HomeStretch
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Joined: Thu Dec 27, 2018 3:06 pm

Re: ADP and worker's comp offer

Post by HomeStretch »

As far as paying the premium goes, a “pay-correctly-as-you-go” system rather than a true-up by audit could work as long as the worker classifications and officer identification (if your state has an officer salary cap) are established accurately upfront in the ADP system.

But audits are also meant to detect fraud and error. So you might not get the best rate if the insurer cannot audit your payroll information as the insurer will probably increase the premium for the inability-to-audit risk if allowed to do so by your state.
pshonore
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Joined: Sun Jun 28, 2009 2:21 pm

Re: ADP and worker's comp offer

Post by pshonore »

Audits are primarily used to verify exposures. Many businesses have changing payrolls and the audit is a way to true everything up. ADP would certainlly have the details. Is ADP actually writing WC coverage? That really sounds strange. Comp is a difficult business.
Dougiefresh
Posts: 25
Joined: Mon Dec 10, 2018 6:57 pm

Re: ADP and worker's comp offer

Post by Dougiefresh »

This is a service which is typically used by small companies. It's a nice convenience. Like all insurance products I would shop it each year to make sure that you are getting best service, etc. ADP does partner with highly rated carriers and from my experience is a reputable company.
Topic Author
ilan1h
Posts: 803
Joined: Mon Oct 22, 2007 3:40 pm

Re: ADP and worker's comp offer

Post by ilan1h »

One of the minor disadvantages of my previous WC carrier is that we never knew in advance what our payroll was going to be. Some years we would wind up overpaying on WC because we paid upfront based on a certain payroll, and then we lost some employees. In other years the opposite would happen. It was not such a big deal because at the end of the year they would always "true it up" by conducting an audit. The audits were not supervised ie: they would simply ask you to put down your actual payroll and they would either refund the difference or charge you more. Kind of like an honor system. ADP WC is different because they know your exact payroll at all times. So no audits. However, the advantage of my current carrier (not ADP) is that they have not increased my rates in 10 years. I have no idea whether ADP is offerering a great intro rate and then will ramp up their charges each year. For now, the rate they are offering is better than my current carrier ($1.10 vs $1.30 per 100 for office workers).
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