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Automating Workers’ Comp Payroll: A Guide to Integration with Existing HR Systems

Automating Workers’ Comp Payroll A Guide to Integration with Existing HR Systems

For business owners and human resource managers, payroll and workers’ compensation claims can be daunting tasks. Not only are they time consuming, but there’s also plenty of room for error—which can cost time and money.


Calculating workers’ compensation payroll entails adding up the gross annual wages of all employees covered by the workers’ compensation policy. This isn’t always straightforward, however, as employee’s hours tend to vary. If you’re a payroll administrator of any kind, you likely know just how impactful it could be to automate workers’ comp payroll.


Keep reading as we dive into the benefits of automating workers’ comp payroll and how working with a PEO can help you integrate payroll automation with your existing HR systems.


Benefits and Features of Workers’ Comp Payroll Automation


If you’re a small or medium-sized business owner or HR manager, streamlining your payroll processes can be incredibly beneficial for your company. PEO payroll services can help you automate your payroll so you can focus on your strengths within the company rather than pouring over numbers and triple-checking your work.


Accurate Workers’ Comp Premium Calculations


In many cases, workers’ compensation premiums are calculated based on the previous year, which can make the process even more complex. Overpaying for coverage means that although the difference would eventually be paid back, you may be waiting a while to receive it—likely until after the audit is complete at the end of the year. Paying too little in premiums, however, could mean you owe a large lump sum when the policy ends.


Automated payroll with a PEO eliminates the guesswork by using real-time payroll data to ensure accurate workers’ comp premium calculations.


Timely Payouts to Your Employees


Paying your employees accurately and on time is critical for the success of your organization. As a business owner or payroll administrator, it may not be uncommon for you to stay up late doing payroll for your company. Manual payroll—particularly when pressed for time—can create even more opportunity for calculation errors.


When you work with a PEO to automate the process, you can guarantee your workers will receive accurate and timely paychecks. PEOs typically use payroll technology for their services to streamline the process, create a simple user experience, and ensure accuracy.


Compliance with Rules and Regulations


When it comes to workers’ compensation, rules and regulations are changing constantly. As a business owner with so much on your plate, it can be difficult to keep yourself up-to-date with laws. PEOs make it a priority to remain current with the workers’ comp regulations so that your company stays compliant, no matter where it’s located.


Steps to Integrate Payroll Automation with HR Systems


Integrating payroll automation into your existing HR systems may sound daunting, but partnering with an experienced PEO can help you simplify the process. Start with the basics like determining pay periods, creating a schedule for payroll, and configuring tax rates, deductions, overtime, and bonuses. A PEO’s HR software can be incredibly helpful when setting up these policies. HR software should also be able to synchronize your data so that it’s consistent across payroll, accounting, and tax software.


When your data and policies are in place, employees should be able to use their online platform to choose a benefits package that fits their needs. Employees should also have access to their payroll information like the number of hours they’ve worked within a pay period and how much they’ve earned so far.


Challenges and Solutions in Integration


Transitioning from one process to another can be time consuming and somewhat tedious. How seamless of a switch it is, however, will have a lot to do with your current setup for payroll. No matter how overwhelming it may feel, an excellent PEO will help you make the shift as smooth as possible. Ultimately, making the transition to automated payroll will be worth it in the long run.


Enhancing Efficiency with Payroll Automation



Automating workers’ comp payroll can help enhance efficiency when it comes to getting your employees paid accurately and on time. If you’re ready to make the shift, reach out to the experienced team at OCMI Workers’ Comp to help streamline your company’s payroll process today.