Managing workers' compensation insurance can be a confusing process. Large upfront deposits are usually required. Premium payments can be underestimated, leading to large final audit payments - disrupting even the best planned cash flow. If for some reason a payment is forgotten, the consequences can be significant - up to and including policy cancellation.

ADP Resource helps you manage these challenges and eliminate the confusion with a comprehensive "Pay-by-Pay" workers' compensation program delivered by ADP Insurance Services®. Pay-by-Pay integrates payment of your workers' compensation premiums into our regular payroll processing service. You submit your payroll data to ADP as usual; ADP calculates your workers' compensation premium the same way we calculate payroll taxes and remits the premiums directly to your insurance carrier. Key benefits of the service include:

• Improved cash flow. Pay-by-pay enables you to eliminate large, upfront premium deposits and spread premium payments over your existing payroll cycle.



• Reduced administrative burden. You no longer need to calculate premiums or write checks for workers' compensation insurance. Premiums are deducted with other payroll charges and paid directly to your carrier.



• Increased accuracy. Premiums are based on actual payroll, reducing the risk of late payment cancellation and minimizing final audit adjustments.