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What is my workers comp premium?

Type each job class's payroll and rate per $100 of payroll, your experience mod and any schedule rating. The workers comp premium calculator estimates your yearly premium.

Your numbers

Job classes
Row 1
Row 2
Estimated premium
$15,931.13

With $500,000.00 of payroll and an experience mod of 0.85, the estimated workers comp premium is $15,931.13 a year.

Manual premium
$20,825.00
After the experience mod
$17,701.25
Experience mod effect
−$3,123.75
Schedule rating effect
−$1,770.13
Total payroll
$500,000.00
Effective rate per $100 of payroll
$3.19

Estimated premium: $15,931.13. With $500,000.00 of payroll and an experience mod of 0.85, the estimated workers comp premium is $15,931.13 a year.

Estimated premium by experience modification rate (EMR)

The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use

How to calculate

Estimates a workers’ compensation insurance premium: payroll ÷ 100 × the rate for each job class, added up, then times the experience modification rate (EMR) and any schedule rating credit or debit.

Example with the default inputs (Job classes [Payroll $150,000.00, Rate per $100 $0.35; Payroll $350,000.00, Rate per $100 $5.80], Experience modification rate (EMR) 0.85, Schedule rating (optional) −10%): With $500,000.00 of payroll and an experience mod of 0.85, the estimated workers comp premium is $15,931.13 a year.

Method: Manual premium = Σ (class payroll ÷ 100 × class rate). Modified premium = manual premium × EMR. Estimated premium = modified premium × (1 + schedule rating ÷ 100). Effective rate = estimated premium ÷ total payroll × 100.

  • The rates are the insurer’s rates per $100 of payroll for each class code; type them from your quote or your state’s rating bureau.
  • Premium discounts, expense constants, deductible credits, terrorism and catastrophe charges, and state assessments are not included.
  • Payroll is the yearly payroll the policy rates; rules that leave out part of overtime pay or cap officers’ payroll vary by state and are not applied.

Machine-readable copies: Markdown, JSON.

Worked examples

Each example is checked against the calculator on every build.

  1. Job classes 500000 2.919, Experience modification rate (EMR) 1.25 gives Manual premium $14,595.00, After the experience mod $18,243.75, Experience mod effect $3,648.75, Estimated premium $18,243.75, Effective rate per $100 of payroll $3.65.Source: Texas Department of Insurance, Texas workers’ compensation rate guide (payroll for each classification × the rate per $100 of payroll; the basic premium is the sum; Code 5551 at an LCM of 1.50 has a rate of 2.919), https://www.tdi.texas.gov/wc/regulation/rcomp.html; California Department of Insurance, Workers Compensation guide (the payroll for each classification is multiplied, per each $100 of payroll, by the rate; the sum is the base premium; then experience modification and schedule rating), https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/WorkersCompensation.cfm
  2. Job classes 150000 0.35; 350000 5.8, Experience modification rate (EMR) 0.85, Schedule rating (optional) -10% gives Total payroll $500,000.00, Manual premium $20,825.00, After the experience mod $17,701.25, Schedule rating effect -$1,770.13, Estimated premium $15,931.13, Effective rate per $100 of payroll $3.19.Source: California Department of Insurance, Workers Compensation guide (the payroll for each classification is multiplied, per each $100 of payroll, by the rate; the sum is the base premium; then experience modification and schedule rating), https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/WorkersCompensation.cfm (base premium, then experience modification and schedule rating)
  3. Job classes 80000 12.5, Experience modification rate (EMR) 1, Schedule rating (optional) 5% gives Manual premium $10,000.00, After the experience mod $10,000.00, Experience mod effect $0.00, Estimated premium $10,500.00.Source: California Department of Insurance, Workers Compensation guide (the payroll for each classification is multiplied, per each $100 of payroll, by the rate; the sum is the base premium; then experience modification and schedule rating), https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/WorkersCompensation.cfm; Texas Department of Insurance, Texas workers’ compensation rate guide (payroll for each classification × the rate per $100 of payroll; the basic premium is the sum; Code 5551 at an LCM of 1.50 has a rate of 2.919), https://www.tdi.texas.gov/wc/regulation/rcomp.html

How it works

  • Manual (base) premium = Σ (class payroll ÷ 100 × class rate), over every job class
  • Modified premium = manual premium × experience modification rate (EMR)
  • Schedule rating effect = modified premium × schedule rating ÷ 100 (a credit is negative)
  • Estimated premium = modified premium + schedule rating effect = manual premium × EMR × (1 + schedule rating ÷ 100)
  • Experience mod effect = modified premium − manual premium
  • Effective rate = estimated premium ÷ total payroll × 100, in dollars per $100 of payroll

Exact arithmetic. Every amount is read as the exact decimal you typed, and each result is an exact fraction, rounded once for display.

Output format. Money shows dollars and cents, rounded half up from the exact value: $15,931.125 shows as $15,931.13.

Assumptions

  • Rates are the insurer's rates per $100 of payroll for each class code (up to $1,000 per $100); the EMR is 0.01 to 10; schedule rating is −99% to +99%.
  • Payroll is the yearly payroll each class is rated on. State rules that leave out part of overtime pay or cap officers' payroll are not applied.
  • Premium discounts, expense constants, deductible credits, terrorism and catastrophe charges, and state assessments are not included.

Worked examples by hand

One class, Texas rate guide's rate. Manual premium = 500,000 ÷ 100 × 2.919 = $14,595. With a 1.25 mod: 14,595 × 1.25 = $18,243.75, an increase of $3,648.75. Effective rate = 18,243.75 ÷ 500,000 × 100 = $3.65 per $100.

Two classes, a credit mod and a schedule credit. Manual premium = 150,000 ÷ 100 × 0.35 + 350,000 ÷ 100 × 5.80 = 525 + 20,300 = $20,825. Modified = 20,825 × 0.85 = $17,701.25. Schedule credit = 17,701.25 × −10 ÷ 100 = −$1,770.13 (exactly −1,770.125). Estimated premium = 17,701.25 − 1,770.125 = $15,931.13 (exactly 15,931.125). Effective rate = 15,931.125 ÷ 500,000 × 100 = $3.19 per $100.

An average mod and a schedule debit. Manual = 80,000 ÷ 100 × 12.50 = $10,000; × 1.00 = $10,000; × 1.05 = $10,500.

Other questions people ask

How is a workers comp premium calculated?

For each job class, payroll ÷ 100 × the rate per $100 of payroll; add the classes to get the manual (base) premium; then multiply by your experience modification rate and by any schedule rating. $500,000 of payroll at $2.919 per $100 is $14,595; with a 1.25 mod it is $18,243.75.

What is the experience modification rate (EMR)?

It compares your past claims with those of similar employers. 1.00 is average. Below 1.00 (for example 0.85) is a credit that lowers the premium; above 1.00 is a debit that raises it. Your state’s rating bureau works it out and your insurer applies it.

Where do the rates per $100 of payroll come from?

Each job class code has a rate that the insurer files with the state. In Texas, for example, the rate is the class loss cost times the insurer’s loss cost multiplier: with a multiplier of 1.50, code 5551 is $2.919 per $100. Use the rates on your quote.

What is schedule rating?

A credit or debit, as a percent, that the insurer applies for features of your workplace that the class rate does not reflect, such as a safety program. Type a credit as a negative number: −10 is a 10% credit.

Why are some classes so much cheaper than others?

The rate reflects the injuries and claim costs expected in that kind of work. Office work has low rates and heavy manual work high ones, so the same payroll can cost very different amounts. A business with both pays each class’s rate on that class’s payroll.

What does the calculator leave out?

Premium discounts for large policies, expense constants, deductible credits, terrorism and catastrophe charges, and state assessments. These vary by state and insurer, so your bill can differ from the estimate.