Workers' Comp Cost Calculator
- Main class
- Second class
Each 0.10 change in your experience mod moves the premium by about $890.00. Your final premium is set after the policy year's payroll audit.
How the workers' comp cost calculation works
Split payroll by class code
Each kind of work has its own class code and rate. A contractor might have $250,000 of crew payroll and $60,000 of office payroll.
Multiply each class by its rate per $100
At $3.50 per $100, $250,000 of crew payroll is $8,750. Office work at $0.25 per $100 on $60,000 is $150. Together that's an $8,900 base premium.
Apply your experience mod
The mod compares your claims history with similar employers. A 0.85 mod cuts $8,900 to $7,565; a 1.20 mod raises it to $10,680.
Add schedule rating and fees
Insurers may add a schedule credit or debit and flat charges such as an expense constant or state assessments. The payroll audit after the policy year sets the final premium.
Worked example. A business with $250,000 of crew payroll at $3.50 per $100 and $60,000 of office payroll at $0.25 per $100 has an $8,900 base premium. With a 1.00 mod and no fees, that's $741.67 a month, $2.87 per $100 of payroll, or $1,112.50 per employee across 8 employees.
Workers' Comp Cost FAQ
How much is workers' comp insurance for a small business?
It depends on your payroll, the class codes for your kind of work, your state's rates and your claims history. Enter the payroll and rate for each class from your quote to see the yearly premium and cost per employee.
How is a workers' comp premium calculated?
Payroll for each class code, divided by 100, times that class's rate gives the base premium. The experience mod and any schedule rating adjust it, then fees are added.
What are workers' comp class codes?
Each type of work in your business gets a class code, for example roofing, landscaping or clerical office work. Each code has its own rate per $100 of payroll, so riskier work costs more. Your quote or policy lists your codes and rates; enter the payroll and rate for each class here.
Where do I find my class code rate?
On your insurance quote or policy, or in your state's workers' comp rate filing. Your agent or insurer can confirm the class code that fits your work.
What is an experience mod?
A multiplier based on your claims history compared with similar employers. Below 1.00 lowers your premium; above 1.00 raises it. Your insurer or agent can tell you your current mod.
Why does my final premium change after the year ends?
The premium starts from estimated payroll. After the policy year, an audit uses your actual payroll by class, and you pay or get back the difference.
Is it the same in every state?
Most states use payroll per $100. Washington's state fund charges premiums per hour worked instead, so use your Washington rate notice there.
Which states sell workers' comp only through a state fund?
A few states don't let private insurers sell workers' comp, so the state agency sets your rate. In North Dakota, Workforce Safety and Insurance is the sole provider. In Washington, employers insure with the state fund or qualify to self-insure. Check with your state's workers' comp agency for the rules that apply to you.
Sources: California Department of Insurance: Workers' compensation insurance guide · Washington L&I: Calculating premium rates · Washington State Legislature: RCW 51.14.010, state fund or self-insurance · North Dakota Workforce Safety and Insurance: About us