ABCO Payroll Services®

By Roger Reynolds

The world is changing -- Payroll and insurance are merging into a total package. We are rapidly reaching the "Tipping Point". Insurance agents have recently felt the need to combine payroll service along with workers' compensation to offer a competitive advantage and to set them apart. In today's economic times, increasing cash flow and reducing audit adjustments are more critical than ever before.

Florida is the pioneer when it comes to "Pay-as-you-Go" workers' compensation insurance. In an effort to compete against PEOs and offer a defensive solution for their agent partners several carriers have now developed payroll deducted billing programs for insureds of all sizes. These programs have become extremely popular and today represent the FASTEST growing segments of the insurance industry. These programs are referred to in different ways by carriers and the large payroll companies, with names such as PaybyPay, Paygo, XactPay, SurePay, PAYO and many more. Many carriers are working directly with two names you may be familiar with - ADP and Paychex.

ABCO Payroll Services will provide you the ability to offer "pay-as-you-go" workers' compensation to your clients.

• Little or no down payment
• No checks to write or monthly billing fees
• Accurate calculations based on actual payroll
• Minimizes the audit adjustment
• Better cash flow management

FAQs

Q: How can ADP or Paychex affect MY Agency?

A: ADP and Paychex have both formed direct writing insurance agencies. The insurance products offered through their agencies will soon be unlimited. They are your COMPETITION as well as ours.

Q: Are agents losing accounts to ADP and/or Paychex?

A: EVERY DAY. If you haven't had this happen to you yet, you should be prepared. Paychex recently announced they now have more than 72,000 WORKERS' COMPENSATION clients. ADP most likely has a similar number of insureds. Remember these two companies represent more than one million payroll clients; they have just begun to market to their existing client base.

Q: What should we do to protect our accounts?

A: Send out surveys and/or simply determine if your insureds outsource their payroll. If you discover that they use ADP, Paychex or any other payroll service, call us today to learn more.

Q: Do we still receive our commissions?

A: YES. We are not in the insurance business but do have many carrier relationships.