{
  "id": "workers-comp",
  "version": "1f88f30e0178",
  "status": "published",
  "name": "Workers Comp Premium Calculator",
  "question": "What is my workers comp premium?",
  "summary": "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.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/workers-comp-calculator",
  "markdown": "https://www.acalculator.org/finance/workers-comp-calculator.md",
  "kind": "function",
  "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.",
  "assumptions": [
    "The rates are the insurer’s rates per $100 of payroll for each class code; type them from your quote or your state’s rating bureau.",
    "Premium discounts, expense constants, deductible credits, terrorism and catastrophe charges, and state assessments are not included.",
    "Payroll is the yearly payroll the policy rates; rules that leave out part of overtime pay or cap officers’ payroll vary by state and are not applied."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "classes": {
        "title": "Job classes",
        "description": "For each job class on the policy: the yearly payroll and the rate per $100 of payroll, 1 to 20 classes.",
        "type": "array",
        "items": {
          "type": "object",
          "properties": {
            "p": {
              "title": "Payroll",
              "description": "Yearly payroll of the workers in this class.",
              "type": "number",
              "x-unit": "USD",
              "minimum": 0,
              "maximum": 100000000000
            },
            "r": {
              "title": "Rate per $100",
              "description": "The insurer’s rate for this class code, in dollars per $100 of payroll.",
              "type": "number",
              "x-unit": "USD",
              "minimum": 0,
              "maximum": 1000
            }
          }
        }
      },
      "emr": {
        "title": "Experience modification rate (EMR)",
        "description": "Your experience mod: 1.00 is average, below 1.00 a credit, above 1.00 a debit.",
        "type": "number",
        "minimum": 0.01,
        "maximum": 10
      },
      "sched": {
        "title": "Schedule rating (optional)",
        "description": "A credit (negative) or debit (positive) the insurer applies for your workplace, as a percent.",
        "type": "number",
        "x-unit": "percent",
        "minimum": -99,
        "maximum": 99
      }
    }
  },
  "outputs": {
    "premium": {
      "label": "Estimated premium",
      "description": "Manual premium × EMR × (1 + schedule rating ÷ 100), for a year.",
      "format": "money"
    },
    "manual": {
      "label": "Manual premium",
      "description": "Each class’s payroll ÷ 100 × its rate, added up: the base premium before any modification.",
      "format": "money"
    },
    "modified": {
      "label": "After the experience mod",
      "description": "Manual premium × EMR.",
      "format": "money"
    },
    "modEffect": {
      "label": "Experience mod effect",
      "description": "Modified premium − manual premium: negative is a saving, positive a surcharge.",
      "format": "money"
    },
    "scheduleEffect": {
      "label": "Schedule rating effect",
      "description": "Modified premium × schedule rating ÷ 100: negative is a credit.",
      "format": "money"
    },
    "payroll": {
      "label": "Total payroll",
      "description": "All the class payrolls added up.",
      "format": "money"
    },
    "effectiveRate": {
      "label": "Effective rate per $100 of payroll",
      "description": "Estimated premium ÷ total payroll × 100.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "classes": [
        {
          "payroll": "150000",
          "rate": "0.35"
        },
        {
          "payroll": "350000",
          "rate": "5.80"
        }
      ],
      "emr": 0.85,
      "sched": -10
    },
    "outputs": {
      "premium": 15931.125,
      "manual": 20825,
      "modified": 17701.25,
      "modEffect": -3123.75,
      "scheduleEffect": -1770.125,
      "payroll": 500000,
      "effectiveRate": 3.186225
    },
    "text": "With $500,000.00 of payroll and an experience mod of 0.85, the estimated workers comp premium is $15,931.13 a year."
  },
  "examples": [
    {
      "given": {
        "classes": [
          {
            "payroll": 500000,
            "rate": 2.919
          }
        ],
        "emr": 1.25
      },
      "expect": {
        "manual": 14595,
        "modified": 18243.75,
        "modEffect": 3648.75,
        "premium": 18243.75,
        "effectiveRate": 3.64875
      },
      "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; hand calculation in content.mdx; Python 3 check in docs/progress/WP-128/xcheck.py"
    },
    {
      "given": {
        "classes": [
          {
            "payroll": 150000,
            "rate": 0.35
          },
          {
            "payroll": 350000,
            "rate": 5.8
          }
        ],
        "emr": 0.85,
        "sched": -10
      },
      "expect": {
        "payroll": 500000,
        "manual": 20825,
        "modified": 17701.25,
        "scheduleEffect": -1770.125,
        "premium": 15931.125,
        "effectiveRate": 3.186225
      },
      "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); hand calculation in content.mdx; Python 3 check in docs/progress/WP-128/xcheck.py"
    },
    {
      "given": {
        "classes": [
          {
            "payroll": 80000,
            "rate": 12.5
          }
        ],
        "emr": 1,
        "sched": 5
      },
      "expect": {
        "manual": 10000,
        "modified": 10000,
        "modEffect": 0,
        "premium": 10500
      },
      "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; hand calculation in content.mdx; Python 3 check in docs/progress/WP-128/xcheck.py"
    }
  ],
  "sources": [
    "California Department of Insurance, Workers Compensation (consumer guide, revised June 23, 2025): the payroll for each classification is multiplied, per each $100 of payroll, by the applicable rate to get the base premium; an experience modification under 100% reflects better-than-average experience and over 100% worse; schedule rating uses debits and credits to modify a base rate. https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/WorkersCompensation.cfm (retrieved 2026-10-18)",
    "Texas Department of Insurance, Texas workers’ compensation rate guide (last updated March 2, 2026): the total payroll for each classification is multiplied by the company’s rate per $100 of payroll; the basic premium is the sum; an experience rating modifier and schedule rating may be applied; rate = loss cost × loss cost multiplier (code 5551 at 1.50 gives 2.919). https://www.tdi.texas.gov/wc/regulation/rcomp.html (retrieved 2026-10-18)"
  ],
  "related": [
    "payroll-tax",
    "salary",
    "gross-pay"
  ],
  "changelog": []
}