At this time, Gusto only supports Workers' Compensation policies through ERGO NEXT Insurance. If you have worker's compensation with a different provider, you can add it to Gusto for your records but you'll need to manage it outside of Gusto.
You can manage your workers’ compensation policy either via the ERGO NEXT Portal or by contacting ERGO NEXT using the details below.
All information about your company's workers' compensation that Gusto has on file can be found by clicking the Taxes & Compliance section and selecting the Stay compliant tab.
Once you run your first payroll, sign in to your ERGO NEXT account to manage job/risk class codes for employees, including assigning, changing, or removing class codes.
Click the Policies tab.
Select Employees.
Click the "edit" pencil ERGO NEXT to each employee's name.
Select the class code and effective date.
Click Save.
You can manage your workers’ compensation policy in the ERGO NEXT Portal.
Log in through:
Your Gusto account (via the Workers’ Compensation section), or
The EERGO NEXT Portal lets you complete common tasks without contacting support.
A certificate of insurance (COI) shows proof that you have active workers’ compensation coverage. Many clients, vendors, or job sites require this document.
To get a COI:
Click Certificates at the top of the page.
To download or email a standard certificate: Click the Certificate tile in the center of the page.
To create a custom certificate (for a specific client or job site): Click Create Custom Certificate.
You have four options to share your certificate: Send on NEXT Letterhead: This will email your certificate directly to your recipient and send you a copy. Email: This will email a copy of your certificate to the recipient. Copy link: Allows you to copy and send the link to your recipient.
Enter the requested details.
Follow the prompts to generate the certificate.
Keep your business information up to date to avoid billing or coverage issues.
To update your business details:
Go to the Account tab.
Select My business.
Click the blue pencil icon next to Business details.
Enter your updated information.
Click Next, then Apply Changes.
You can adjust your workers’ compensation coverage limits in the ERGO NEXT Portal.
To change coverage limits:
Go to the Coverage tab.
Select My Coverage.
Find your policy. Click the three blue dots.
Select Policy Details.
Click Manage Coverage.
Choose your new limits from the drop-down menus.
Click Check Price to review the updated cost.
Click Apply Changes to confirm.
To cancel your policy:
Go to your account homepage.
Click View Details on your policy.
Select Cancel Coverage.
Enter a reason.
Confirm your cancellation date.
You can reinstate a canceled policy within 30 days of cancellation.
To reinstate:
Go to the Coverage tab.
Select My Coverage.
Click the three blue dots on the canceled policy.
Select Reinstate.
Review and agree to the terms.
Click Submit.
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:
Every time you run payroll (regular, off-cycle, or bonus payroll), we'll send your payroll information to our partner, NEXT Insurance.
NEXT Insurance calculates the premium due based on your payroll information and remits the premium payment to the carrier on your behalf. The premium 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
A workers’ compensation invoice will appear in NEXT for payrolls processed in that week.
A debit for this calculated premium will be deducted from your company bank account.
Note: NEXT Insurance will debit from the default company bank account used in Gusto. This cannot be changed unless you change your default company bank account in Gusto. They have this information as part of the Gusto/NEXT Insurance integration.
The cost depends on your business, industry, and the type of work that your employees perform. Factors that can impact your costs include:
Your annual payroll amount
The “risk class code” of jobs being performed (some jobs are riskier than others—like construction, for example)
The overall rate of injuries within your industry
The rate of injuries within your state
Your company’s claims history (the safer your business, the less you may have to pay over time)
Inclusion/exclusion of owners or officers
The average cost of workers’ comp insurance is around 1.4% of a person’s total compensation. So if one of your employees makes $75,000 a year, you can expect to pay around $1,050 a year on workers’ comp insurance.
Pay As You Go fee
In addition to your premiums charged by NEXT, a fee of $1 per employee per month applies to Gusto Pay As You Go Workers’ Compensation policies. The maximum you’ll pay is $5—no matter how many employees you have.
With the Pay As You Go (PAYG) model, your premiums are based on actual payroll. For example, if you run payroll monthly, you’d pay around $87.50 in workers’ comp premiums each month, plus the $1 Gusto integration fee—rather than paying the full $1,050 upfront.
This fee supports the continued development and enhancement of our Pay As You Go Workers’ Compensation service. It’s designed to keep the experience fast, seamless and integrated with payroll—helping you simplify insurance administration.
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, contact NEXT Insurance at (866) 610-0063 to let them know. This will keep your policy intact and help you avoid having to repurchase insurance when this is needed in the future.
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 if NEXT is unable to collect payment for 30 days or more, and you'll have to ask NEXT Insurance to retry the debit one more time. If the issue is not resolved, the carrier will mail a "pending cancellation" notice to your company.
Q: What sort of communication is sent out regarding billing?
A: Various communications are sent regarding workers' comp billing:
When you run payroll, a workers' compensation invoice appears in NEXT that week.
NEXT sends an email letting you know of the upcoming debit.
If no payroll is run, no billing will be processed and no communication will be sent.
If you do not run payroll for more than 30 days, NEXT will email you to inform that your company is at risk for policy cancellation if you do not run payroll consistently.
Q: Why choose Pay-As-You-Go?
A: Pay As You Go Workers’ Comp still offers major advantages and savings, including:
Improved cash flow: Premiums are based on Gusto payroll data and paid per pay period – no big, upfront payment required.
Less admin time: Payments adjust automatically with payroll changes, which can simplify your end of year audit and reduce the likelihood that you’ll owe additional premium at the end of the year.
No guesswork: There’s no need to estimate annual payroll upfront – your premiums will reflect real data, so you pay for only what you need.
Pay As You Go can save you time, help avoid costly audit surprises, and fit your business’s cash flow better. Even with the small fee, it’s designed to make managing workers’ comp simpler and more affordable overall.
Q: Can I switch to a carrier-billed payment to avoid the Pay As You Go fee?
Yes, you have choices beyond the Pay As You Go fee. There are two options to maintain your coverage while avoiding the fee:
Self-Reporting (remain on Pay As You Go): You can continue with Pay As You Go billing, but you'll need to manually upload your payroll information directly to the NEXT Portal. This requires a specific format, and it's essential to upload data at least every 30 days to prevent potential policy cancellation.
Carrier-billed payment: With this option, you pay a fixed amount on a regular schedule directly to your insurance carrier. Switching to a carrier-billed payment might necessitate a new policy, which could affect existing documents and pricing. It may also involve a larger upfront premium payment, and you'll need to perform more manual reconciliation during audit time. While you would no longer report payroll directly to NEXT, NEXT Agency will still provide assistance with your policy needs.
If you’d like to explore your options further, contact us from the ( ? ) in your account.
When you sign up for workers' compensation through Gusto, you'll see two different rates:
Manual rate (quoted rate): This is the estimated rate on your initial quote. It shows what you might pay before any added fees, taxes, and discounts.
Composite rate (billed rate): This is the actual rate we charge based on your payroll. It includes all fees, taxes, and discounts from the state or carrier.
NEXT Insurance uses the composite rate with pay-as-you-go billing. This helps lower any extra premium you might owe during your annual audit.
Q: Why is my composite rate different from my manual rate?
A: Your manual rate is an estimate. Your composite rate is the final rate we charge. The composite rate can be higher or lower depending on the fees, taxes, and discounts that apply to your policy.
Q: Where can I find information about fees in my policy?
A: To see your workers’ compensation proposal, invoices, plan details, and more, sign in to the NEXT Customer Dashboard. If you cannot find it, email NEXT Insurance at [email protected].
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. Make sure to set the renewal reminder for next year, not the current one.
Click the Taxes & Compliance section and select Stay compliant.
Next to Workers' Compensation Insurance, click Get started.
Select Yes - we already have a policy.
Click Continue.
Select I don’t want to integrate workers’ comp with payroll.
Click Continue.
Enter your policy information.
We’ll email you a notification before 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.
Worker's comp carriers may audit at policy end or cancellation to help determine if the company owes any additional money or needs to be refunded. The notice lists documents needed to verify payroll during the policy term.
Pay-as-you-go policies reduce audit risk by charging based on actual payroll amounts.
Gusto can help you find documents in your account, but cannot answer the audit on your behalf or give legal advice.
If you're a NEXT Insurance customer, use your NEXT Portal or email [email protected].
Find quarterly tax forms (for example, 941s).
Run a Payroll Journal report for the time frame.
To cancel your workers' compensation, you'll need to reach out to ERGO NEXT Insurance directly, as Gusto does not have permissions to cancel your policy.
Phone number: (866) 610-0063
Email address: [email protected]
If you have questions about premiums, coverage, billing, audits etc., contact ERGO NEXT Insurance. Log in to the NEXT Portal.
Phone: (866) 610-0063, option 11 Email: [email protected]
If you need a certificate of insurance, request one via email at [email protected].
If you need to file a claim or have any questions regarding claims, contact the carrier below.
Guard: (888) 639-2567, [email protected] Amtrust: (866) 272-9267, [email protected] Employers: (888) 682-6671, [email protected] Markel: (888) 500-3344, [email protected] NEXT: (855) 222-5919, [email protected] Pie Insurance: (844) 581-0828, [email protected]