Workers' comp premium payments and payroll
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, AP Intego.
- AP Intego will forward this to your insurance carrier and use the payroll information to determine your premium amount. This amount is calculated based on 3 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
Restrictions with inconsistent payroll
Pay-as-you-go workers' compensation requires consistent payroll. If you do not run a payroll for 5 consecutive weeks during the course of your policy period, AP Intego will debit your account $30 for No Payroll Adjustment. If your policy continues another 2 weeks after the $30 debit without activity, your policy will be referred to the insurance company for cancellation.
If you therefore anticipate a time period greater than 4 weeks without payroll, please contact AP Intego 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.