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 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

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

Syncing information

See the categories below to learn what information can sync to Gusto from NEXT, and vice versa.

Banking

We automatically sync banking information to NEXT, along with any subsequent banking changes.

Payrolls

We automatically sync payrolls on the check date. The following payrolls will not sync:

• $0 payrolls (payrolls without wages)
• Payrolls that only have wages for employees in unsupported states
• Payrolls that only have wages for owners that are listed as exempt on the policy

We automatically sync payroll reversals after they're processed. If synced:

• Before the end of the billing cycle, NEXT will not debit for premiums for the reversed payroll. 
• After the end of the billing cycle, you'll receive a credit for reversed premiums on the next billing cycle.

Employee and company updates

Every morning, Gusto notifies NEXT of the following changes: 

• Updates to pay schedules
• New employees
• Changes to company addresses and work locations
• Gusto account cancellations

If you have any questions while you’re setting up your policy, reach out to NEXT Insurance directly at (866) 610-0063 or gustosupport@apintego.com.

Get a new policy

1. Sign in to Gusto.
2. Click the Taxes & Compliance section and select Stay compliant.
3. On the Workers' Compensation Insurance tile, click View.
4. 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. 
5. Click Continue.
6. Click Get a free quote.
7. Answer a few questions about your company. Some of this information may be pre-filled based on details you have already shared with us in setting up payroll.
8. Choose your preferred policy by clicking Get Coverage in the quoting comparison page.
9. Click Accept terms and conditions after reading the terms and conditions.
10. Click Issue Policy.
11. Wait for an email from NEXT inviting you to access your customer dashboard on their platform, where you can download your certificate and view policy details.
    

Depending on the nature of your business, you may see an instant quote.

If you do not 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, they’ll reach out and work on the quote after they have 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. 

Approve the policy

1. Sign in to Gusto.
2. Click the Taxes & Compliance section and select Stay compliant.
3. On the Workers' Compensation Insurance tile, click Connect Policy.
4. Review the policy details and click Connect Policy.

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.

To manage job/class codes for employees, including assigning, changing, or removing class codes, log in to NEXT’s customer portal.

If you're already a 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 gustosupport@apintego.com. 

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

Step 1. Confirm your policy is eligible for transfer

1. Sign in to Gusto.
2. Click the Taxes & Compliance section and select Stay compliant.
3. Next to Workers' Compensation Insurance, click View.
4. Select “Yes, we already have a policy”, then click Integrate workers’ comp.
5. Enter the requested info about your current policy.
6. Click Submit.

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 is not 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. Sign in to Gusto.
2. Click the Taxes & Compliance section and select Stay compliant.
3. Next to Workers' Compensation Insurance, click Connect Policy.
4. Review the policy and click Connect Policy.

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 before 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 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
3. A workers’ compensation invoice will appear in NEXT for payrolls processed in that week.
4. 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. 

Pricing for workers’ comp insurance

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.

Consistent payroll requirement

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.

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 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 direct billing 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 customer dashboard. This requires a specific format, and it's essential to upload data at least every 30 days to prevent potential policy cancellation.
• Direct Billing: With this option, you pay a fixed amount on a regular schedule directly to your insurance carrier. Switching to direct billing 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 Help section of your Gusto account.

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

• Manual rate: The manual rate (also known as the quoted rate) is the rate on your initial quote. It shows the estimated net amount before 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's 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 applies the composite rate to your payroll with the pay-as-you-go billing method. Applying the composite rate helps reduce additional premium due at audit.

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'll 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 cannot find this information, or if you did not go through the quoting process in Gusto, log in to the NEXT Customer Dashboard where you can find information on your account as well as pull policy documents to locate the fees. You can also reach out to NEXT Insurance at gustosupport@apintego.com for these details.

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 Dashboard or email gustosupport@apintego.com.

Helpful items

• Find quarterly tax forms (for example, 941s).
• Run a Payroll Journal report for the time frame.

Policy/quote support

If you have questions about premiums, coverage, billing, audits etc., contact NEXT Insurance. Log in to the NEXT Customer Dashboard Portal.

Phone: (866) 610-0063, option 11
Email: gustosupport@apintego.com

If you need a certificate of insurance, request one via email at gustosupport@apintego.com.

Claims-related questions

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

Guard: (888) 639-2567, claims@guard.com
Amtrust: (866) 272-9267, anaclaimsreporting@amtrustgroup.com
Employers: (888) 682-6671, reportaclaim@employers.com
Markel: (888) 500-3344, froi@markelcorp.com
NEXT: (855) 222-5919, support@nextinsurance.com
Pie Insurance: (844) 581-0828, claims@pieinsurance.com