Thatch and ADP Simplify Small Business Healthcare with Seamless ICHRA Integration via RUN Powered by ADP

New embedded solution empowers more than 900,000 small businesses to offer flexible, affordable health coverage directly in RUN Powered by ADP® (RUN)

• Integrated ICHRA Experience: Employers can discover, quote, and activate ICHRA plans through Thatch directly within RUN.
• Streamlined Administration: Payroll deductions and carrier payments are automated, reducing administrative burden.
• Flexible Employee Choice: Through Thatch, employees can select health, dental, vision, and other plans that best meet their needs in one seamless experience.

ROSELAND, N.J., Dec. 11,  2025 /PRNewswire/ -- ADP® (Nasdaq: ADP) announced a new integration with Thatch, an Individual Coverage Health Reimbursement Arrangement (ICHRA) platform, now embedded within the  RUN Powered by ADP® (RUN) payroll platform. The experience gives small and mid-sized businesses direct access to ICHRA health benefits from within their payroll workflow. 

The integration builds on ADP Ventures' April 2025 strategic investment in Thatch, showcasing how ADP accelerates innovation by partnering with startups and embedding their capabilities directly into ADP's software to drive measurable client impact.

"One of the big benefits small businesses have today is the ability to be quick and flexible. Integrating Thatch into RUN gives organizations that power," said Matt Farwell, ADP president, small business, retirement and insurance services. "As the small business landscape continues to change every day, leaders can now offer workers, their most valuable asset, direct access to the benefits that matter most to them."

The Rise of ICHRAs

Rising costs and administrative complexity make traditional group plans challenging for many small and mid-market businesses. ICHRAs offer a durable alternative: employers can set tax-free monthly healthcare allowances that employees can use to purchase individual health, dental, vision, and other plans tailored to their needs.

Thatch and RUN Working Together

With Thatch embedded in RUN, employers can request a quote and enroll in ICHRA benefits through an embedded interface. The integration syncs payroll deductions, automates carrier payments and helps employers stay compliant, and empowers employees to choose their preferred coverage via the tool businesses already use.

Key Benefits of the Thatch–ADP RUN Integration:

• Embedded Discovery & Activation: Employers can discover, activate, and manage Thatch's benefits natively within RUN, guided by intelligent recommendations.
• Automated Payroll Sync: Contributions are automatically deducted, helping to reduce manual work, errors, and administrative time.
• Choice & Simplicity for Employees: Through Thatch, workers can then select health, dental, vision, or other plans that fit their needs in one streamlined experience.

"Our integration with ADP represents a major step forward for small business healthcare access and affordability," said Chris Ellis, CEO and co-founder of Thatch. "Payroll is the operating system for most small businesses. By embedding Thatch directly into ADP's platform, small business owners can quickly and easily offer flexible, affordable health benefits without the administrative burden. Together, we're helping small business owners compete for talent by enabling them to offer affordable health."

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About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises — and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com

About Thatch
Thatch is an all-in-one platform that makes it easy for companies to offer personalized healthcare benefits using ICHRA (Individual Coverage Health Reimbursement Arrangements). By combining fintech and healthtech solutions, Thatch empowers businesses to provide tax-free dollars their team members can use to purchase personalized health coverage. Since launching in 2023, Thatch has helped more than 1,000 companies across every industry improve their healthcare coverage while controlling costs. For more information, visit Thatch.com

ADP, the ADP logo, and Always Designing for People, are trademarks of ADP, Inc. All other marks are the property of their respective owners.

Copyright © 2025 ADP, Inc.  All rights reserved.

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SOURCE ADP, Inc.