Manage your company's Workers' Compensation

Adding a new employee with the same risk class code

When adding a new employee to Gusto, there will be a drop-down in the "Job Class Code" field where you can select the risk class code for this employee. The risk class codes available for selection are only for existing class codes on the policy.

• For example: If the current risk class code for all existing employees is 8850 - Computer Programming and your new employee also falls under that risk class code, select that code. Gusto will then associate that employee’s payroll to that risk class code.

Adding a new employee with a different risk class code

In addition to any existing risk class codes on the policy, you can select "Something else" in the "Job Class Code" and NEXT Insurance will help determine the new job class code.

1. For employees who require a new risk class code, assign them with a job class code of Something else in the Compensation section during onboarding.
2. Write a short description of the role and if it involves travel to determine the workers' comp code.
   • Gusto automatically sends this description to NEXT Insurance—they need to know about the employee's job function to determine what job class code should be added to the policy.
3. NEXT Insurance works with the insurance carrier to update the policy (this can take a few days depending on the carrier's responsiveness). Once the policy has been updated, NEXT Insurance will send those changes to your Gusto account, and you'll receive an email notifying you of the update. 
   • The next time you log into your Gusto account, you'll need to review the changes to the policy and assign the applicable employees to the new class code(s). 
4. Once the enrollment has been received, a notification will appear on your Gusto Home page prompting you to “Verify Changes to Their Workers’ Compensation Policy.”
5. Confirm the addition of the new risk class code(s) and reconfirm the individual employee classifications. To view or edit this information in an employee’s individual profile:
   • Click the People section and select Team members.
   • Click your employee’s name.
   • Navigate to the Job & Pay tab.
   • In the Compensation section next to Job Class Code, click edit and select the appropriate risk class code.
   • Click save.

Does your employee have multiple pay rates? If so, you may be unsure which job category to select when you have a workers' compensation policy through Gusto. If your employee’s main job category falls under one of the following special risk class codes, they cannot have another risk class code selected. All job categories for that employee need to be assigned to that same code.

All states except for Delaware and Pennsylvania:

• 8810 - Clerical
• 8742 - Salespersons or Collectors-Outside
• 8871 - Clerical Telecommuter Employees
• 7380 - Drivers, Chauffeurs, Messengers, and Their Helpers NOC - Commercial
• 8748 - Automobile Salespersons

Delaware and Pennsylvania:

• 953 - Clerical
• 951 - Salespersons or Collectors-Outside

To make things easy, Gusto will prevent you from selecting multiple job categories if one of these special risk class codes are selected as the primary for your employee.

To change an employee's risk class code, follow the steps below.

1. Click the People tab and select Team members.
2. Select the employee's name.
3. Scroll to the Compensation section and click edit next to Workers' Comp Coverage.
4. Select the new risk class code from the dropdown
5. Click Save.

To remove a risk class code, reach out to us through the Help or Priority support section of your account. 

1. When adding an employee in a new state, assign them with a job class code of Something else in the Compensation section of their profile.
2. Write a short description of the role and if it involves travel to determine the workers' comp code.
   • Gusto automatically sends this description to NEXT Insurance—they need to know about the employee's job function to determine what job class code should be added to the policy.
3. NEXT Insurance will work with you to add the new state to the policy and make sure the risk class code is reflected.
   • It may be the same risk class code as the existing employees, but will have the new state initials in front of the risk class code on the quote summary.
   • Occasionally, part of the process on NEXT Insurance's side will require the admin/owner to sign an endorsement for the new state.
4. NEXT Insurance works with the insurance carrier to update the policy (this can take a few days depending on the carrier's responsiveness). Once the policy has been updated, NEXT Insurance will send those changes to your Gusto account and, you'll receive an email notifying you of the update. 
   • The next time you log into your Gusto account, you'll need to review the changes to the policy and assign the applicable employees to the new class code(s). 
5. Once the enrollment has been received, a notification will appear on your Gusto Home page prompting you to “Verify Changes to Their Workers’ Compensation Policy.” 
6. Confirm the addition of the new state risk class code(s) and reconfirm the individual employee classifications. To view or edit this information in an employee’s individual profile:
   • Click the People section and select Team members.
   • Click your employee’s name.
   • Navigate to the Job & Pay tab.
   • In the Compensation section, next to Job Class Code, click edit and select the appropriate risk class code.
   • Click save.

Once you’ve done this, your policy sync is active again.  

A workers’ compensation certificate of insurance serves as proof of your coverage. Below are a few options to get this certificate if your policy is through NEXT Insurance.

• Email [email protected].
• Call (888) 289-2939, and use the certificate prompt.
• You can request your certificate of insurance online if your policy is with one of the following: 
  • Hartford
  • Travelers
  • Guard

Please reach out to NEXT Insurance directly at [email protected] or (866) 610-0063 with any questions specific to certificates or coverage.

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.

If Gusto isn't managing your workers' compensation policy, you can set a notification in Gusto to remind you when your policy is up for renewal. 

1. Click the Taxes & compliance section and select Stay compliant.
2. Next to Workers' Compensation Insurance, click Get started.
3. Select Yes - we already have a policy.
4. Click Continue.
5. Select I don’t want to integrate workers’ comp with payroll.
6. Click Continue.
7. Enter your policy information.

We’ll email you a notification prior to your policy expiration date as a reminder to renew. You'll also be given the option to set up another renewal reminder or add a workers' compensation policy through Gusto.

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. 

To cancel your workers' compensation, you'll need to reach out to NEXT Insurance directly, as Gusto doesn't have permissions to cancel your policy.

• Phone number: (866) 610-0063 
• Email address: [email protected]

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