Set up Workers' Compensation with NEXT Insurance

When you set up workers' compensation insurance in Gusto, we collect various business, employee, and payment information. This information is securely shared with NEXT Insurance, who works with insurance providers to get you the best quote and enroll you in a new policy without ever leaving Gusto. 

After your workers' compensation policy is set up, Gusto sends your payroll information to NEXT Insurance every time you run payroll. NEXT Insurance uses the payroll amount to calculate the workers' compensation premium charge, make the necessary payments to carriers, and submits all the paperwork.  Below are a few other advantages with signing up for workers' compensation with Gusto:

• Simple sign up through your Gusto account
• Instant online estimated quotes viewed through your Gusto account
• Finalize a policy with electronic signatures
• Pay-as-you-go payment method, where you pay exact amounts throughout the year based on actual payrolls run through Gusto
• Reduced audit bills by having payroll information sync directly to your insurance carrier
• Billing for both workers' compensation and payroll
• Email notifications reminding you of important dates and to-do items
• No additional fees for setting up workers' compensation through Gusto

All information about your company's worker's compensation that Gusto has on file can be found by clicking the Taxes & compliance tab and selecting the Stay compliant tab. Invoices can be found by clicking Settings and then selecting Plan & billing.

If you have any questions while you’re setting up your policy, reach out to NEXT Insurance directly at (866) 610-0063 or [email protected]

Follow these steps to get a new policy: 

1. Click the Taxes & compliance section and select Stay Compliant.
2. On the Workers' Compensation Insurance tile, click Get Started.
3. Since this is a new policy, select No - we don't have a policy.
   • Note: If you already have workers’ comp, click Yes - we already have a policy, and we’ll ask a few more questions about your current policy. 
4. Click Continue.
5. Click Set Up a new policy.
6. Answer a few questions about your company, industry, and employee job details. 
   • Note: If you've added additional pay rates for your hourly employees, you'll be prompted to choose the applicable risk class code for each employee job category on the following page. 
7. Click Save & continue. 

Depending on the nature of your business, you may see an instant quote. If that’s the case, review the policy details and click Accept quote now, or reach out to NEXT Insurance directly to start over. 

If you don’t see an instant quote, NEXT Insurance will review your company information and provide you with a quote in the next couple of business days—if they have any questions about the details you submitted, they’ll reach out to you directly and work on your quote after they have all the information they need. Otherwise, you’ll receive an email once your quote has been finalized so you can approve the policy in your Gusto account. 

To approve the policy, follow these steps: 

1. Click the Taxes & compliance section and select Stay Compliant.
2. On the Workers' Compensation Insurance tile, click View Details.
3. Review the policy details and click Accept & continue.
4. Select the job category for each employee.
5. Click Save & Continue.

We'll send your forms to NEXT Insurance. Once they’re done processing all the information, your policy will be active and we’ll email you to let you know. You can go back to the Stay Compliant section and view your policy details under Workers' Compensation Insurance at any time.

If you're already an NEXT Insurance customer and you’d like to integrate your existing policy with your Gusto account, reach out to NEXT Insurance directly at (866) 610-0063 or email at [email protected]. 

If you're not a NEXT Insurance customer, follow the instructions below to transfer your policy to Gusto. 

Step 1. Confirm that your policy is eligible for transfer

1. Click the Taxes & compliance section and select Stay compliant.
2. Next to Workers' Compensation Insurance, click Start.
3. Select “Yes - we’re covered” and enter the requested info about your current policy.
4. Click Continue.
5. Click Transfer to Gusto.

You'll see a summary page that contains next steps depending on whether your policy is eligible for transfer at this time. If your policy isn't eligible for transfer, we’ll automatically set a renewal reminder for you in Gusto.

Step 2. NEXT Insurance will help you transfer your policy

1. NEXT Insurance will reach out to you and gather the final details needed to transfer your policy.
2. They'll provide you with any paperwork that needs to be electronically signed.

Once your policy has been transferred to NEXT Insurance, your policy details will be loaded into Gusto. You'll receive an email when this happens so that you can approve this policy.

Step 3. Approve your policy

1. Click the Taxes & compliance section and select Stay compliant.
2. Next to Workers' Compensation Insurance, click Connect Policy.
3. Review the policy and click Connect Policy.
4. Select the job category for each employee.
5. Click Save & Continue.

Note: Transferring your policy to Gusto involves changing the broker on your existing policy. Your current policy will be cancelled and rewritten with NEXT Insurance as your new broker. If you'd rather not transfer your policy right now, you can set up a reminder in Gusto, and we’ll email you a notification prior to your policy expiration date.

When you sign up for workers' compensation with Gusto, premium amounts are submitted using the pay-as-you-go payment method. 

The following timeline occurs when you run payroll:

1. Every time you run payroll (regular, off-cycle, or bonus payroll), we'll send your payroll information to our partner, NEXT Insurance.
2. NEXT Insurance will forward this to your insurance carrier and use the payroll information to determine your premium amount. This amount is calculated based on 4 key factors:
   • Employer's payroll amount
   • Job classification (4 digit class codes) within the company
   • Historical claims experience (experience rating or ex mod)
   • Taxes and surcharges applicable to the state
3. Every Thursday, a workers' compensation invoice will appear in your Settings section under Plan & Billing for payrolls processed within the prior week.
4. A debit for this calculated premium will be deducted from your company bank account. Note: NEXT Insurance will debit from the company bank account used in Gusto, this can't be changed unless you change your company bank account in Gusto. They have this information as part of the Gusto/NEXT Insurance integration. 

Restrictions with inconsistent payroll

Pay-as-you-go workers' compensation requires consistent payroll. If you do not run at least one payroll per month, you run the risk of policy cancellation. If you anticipate a time period greater than 4 weeks without payroll, please contact NEXT Insurance at (866) 610-0063 to let them know. This will keep your policy intact and avoid having to repurchase insurance when this is needed in the future.

FAQs

Q: Why is my premium $XX amount?
A: NEXT Insurance is responsible for calculating the premium amount based on the payroll information in your Gusto account. Any questions about the amount should be directed to NEXT Insurance.

Q: What is the Expense Constant?
A: States regulate the amount an insurance company can charge for the administrative cost of a policy. This charge is called an Expense Constant. It's generally the only flat dollar amount charged on the policy. The expense constant range is typically between $100 - $380 per policy based on the state and is built into your premium deductions. 

Q: What happens if the debit for our premium deduction fails?
A: NEXT Insurance will automatically attempt to re-debit your account 48 hours later. If the second debit is unsuccessful, your policy will go into "pending cancellation" stage and you'll have to ask NEXT Insurance to retry the debit one more time. If the issue is not resolved, the carrier will send a "pending cancellation" notice to your company via traditional mail. 

Q: What sort of communication is sent out regarding billing? 
A: Various communications are sent in regard to workers' comp billing:

• Every Thursday, a workers' compensation invoice will appear in your Settings section under Plan & Billing for payrolls processed within the prior week.
  
  • Gusto sends an email letting you know of the upcoming debit.
  • If no payroll is ran, no billing will be processed and no communication will be sent. 
• If you don't run payroll for more than 30 days, our system will email you to inform that your company is at risk for policy cancellation if you don't run payroll consistently. 

There are two different rates you'll come across when signing up for workers' compensation through Gusto:

• Manual Rate: The manual rate (also know as the quoted rate) is the rate on your initial quote. It shows the estimated net amount prior to any fees, surcharges, taxes, and discounts from the state or carrier.
• Composite Rate: The composite rate (also known as the billed rate) is the actual rate that is charged based on your payrolls processed through Gusto. It includes a blended amount of fees, surcharges, taxes, and discounts from the state or carrier based on each payroll.

NEXT Insurance created a composite rate that includes all charges to provide you with a pay-as-you-go billing method. By having a composite rate, this should prevent you from owing additional money at the end of your policy term since it has already incorporated the various fees and surcharges based on your payrolls.

FAQs

Q: Why is my composite rate different from my manual rate?
A: Your composite rate may be higher or lower than your manual rate based on your circumstances. If you have a credit modification and hefty discounts, you will likely have a lower composite rate than your manual rate.

Q: Where can I learn about additional fees within my policy?
A: The various fees are outlined in your workers' compensation proposal provided by NEXT Insurance. If you received your quote and signed your workers' compensation forms within Gusto, this should be available in your Forms section.

If you can’t find this information, or if you did not go through the quoting process in Gusto, reach out to NEXT Insurance at [email protected] for these details.

A workers’ comp audit can happen when a policy expires or is cancelled (both voluntarily or involuntarily). When the policy is audited, the carrier (e.g. Hartford, Travelers, etc.) will send a notice, either via email or mail, requesting specific documentation to confirm the actual payroll amounts run throughout the policy term.

Policy audits help determine:

• If the company owes any additional money, or;
• If the company needs to be refunded by the carrier. 

Pay-as-you-go workers’ comp policies aim to reduce the likelihood of an audit by assessing the premium amounts based on actual payroll, but an audit of the policy is still possible.

If you've received a notification from your carrier asking you to complete an audit, Gusto can help you access related documents and reports in your account, but we cannot legally respond to the audit on your behalf or advise on how to complete the audit. 

If you're a NEXT Insurance customer, you can reach out to [email protected] for additional guidance.

Documents and reports that can help

• Quarterly tax forms (ex. 941s)
• Run a payroll journal report for the applicable timeframe.
  • Learn how to access and run a payroll journal report in the How to run a Gusto report or build a custom report dropdown above. 

Policy/Quote Support

If you have questions about premiums, coverage, billing, audits etc. contact NEXT Insurance.

Phone: 1 (866) 610-0063, option 1
Email: [email protected]

If you need a certificate of insurance, request one via email at [email protected].

Claims-Related Questions

If you need to file a claim, or have any questions regarding claims, contact the carrier below.

The Hartford: 1 (800) 327-3636
Travelers: 1 (800) 238-6225
Guard: 1 (888) 639-2567
AmTrust: 1 (866) 272-9267
Employers: 1 (888) 682-6671
Markel FirstComp: 1 (888) 500-3344
CNA: 1 (877) 262-2727