Free workers comp calculator 2026. Estimate annual workers compensation premium from payroll and class code rate. See per-$100 payroll cost, experience mod impact, and 5-year projection.
Enter your total payroll for the policy period (typically one year). Use gross payroll before deductions — workers comp is calculated on gross wages, including overtime and bonuses.
Enter the class code rate per $100 of payroll. This rate is set by your state rating bureau (NCCI in most states, or the state's own bureau in monopolistic states like OH, WA, WY, ND).
Optionally, enter your experience modification factor (MOD). A MOD of 1.00 is average; below 1.00 earns a credit; above 1.00 incurs a debit.
Click "Calculate" to see your estimated annual premium, monthly cost, and per-employee breakdown.
Review the worked examples below to see how premium varies by industry class code and how the experience MOD multiplies your base rate.
Workers compensation premium is calculated by dividing your gross payroll by 100, multiplying by the class code rate (set by your state's rating bureau), and then multiplying by your experience modification factor (MOD). Class code rates vary by industry — an office worker might cost $0.15 per $100 of payroll, a construction worker $5-$25 per $100, and a roofing worker $15-$30+ per $100. Premiums are typically audited annually.
A 10-person accounting firm with $500,000 annual payroll. Office clerical class code 8810 at $0.15 per $100. Premium = ($500,000 / 100) × $0.15 × 1.00 MOD = $750/year. Monthly cost: $62.50. Per-employee cost: $75/year. This is the cheapest workers comp category — office work has very low injury rates.
A restaurant with $400,000 annual payroll. Restaurant class code 9079 at $1.85 per $100. Premium = ($400,000 / 100) × $1.85 × 1.00 = $7,400/year. Monthly cost: $617. Per-employee cost (15 staff): $493/year. Restaurant rates are mid-range — kitchen burns and slips account for most claims.
A 20-person construction company with $1,000,000 annual payroll. Construction class code 5403 at $7.20 per $100. Premium = ($1,000,000 / 100) × $7.20 × 1.00 = $72,000/year. Monthly cost: $6,000. Per-employee cost: $3,600/year. Construction is among the most expensive class codes due to fall, equipment, and heavy-lift injury risk.
A 12-person roofing company with $800,000 annual payroll. Roofing class code 5551 at $18.50 per $100. Premium = ($800,000 / 100) × $18.50 × 1.00 = $148,000/year. Monthly cost: $12,333. Per-employee cost: $12,333/year. Roofing has the highest injury severity of any common class code — falls from heights routinely generate six-figure claims.
A trucking company with $1,500,000 annual payroll. Trucking class code 7219 at $5.80 per $100. Due to multiple claims in the past 3 years, the MOD is 1.35 (35% debit). Premium = ($1,500,000 / 100) × $5.80 × 1.35 = $117,450/year. Without the debit (MOD=1.00): $87,000/year. The MOD debit added $30,450 — a 35% premium increase that compounds for 3 years until the claims age out.
A 50-person software company with $7,500,000 annual payroll. Clerical class code 8810 at $0.15 per $100. With a clean safety record, the MOD is 0.85 (15% credit). Premium = ($7,500,000 / 100) × $0.15 × 0.85 = $9,562/year. Without the credit (MOD=1.00): $11,250/year. The MOD credit saved $1,688/year.
Find answers to the most common questions about workers comp calculator.
Workers compensation insurance (often called "workers comp") is a state-mandated insurance program that provides wage replacement and medical benefits to employees who are injured on the job. In exchange for these guaranteed benefits, employees generally give up the right to sue their employer for negligence. Every state except Texas requires employers to carry workers comp coverage.
Class codes are 3- or 4-digit numbers assigned by the National Council on Compensation Insurance (NCCI) or your state's rating bureau. Each code represents a specific type of work with a historically-determined injury frequency and severity. For example, code 8810 is clerical office work (low risk), code 5403 is construction (high risk), and code 5551 is roofing (very high risk). Misclassifying employees to a lower-risk code is fraud.
The experience MOD (also called "experience modifier" or "EMR") is a multiplier applied to your workers comp premium based on your claims history relative to other businesses in your industry. A MOD of 1.00 means your claims are average for your industry. Below 1.00 is a credit — you pay less than the manual rate. Above 1.00 is a debit — you pay more. The MOD is recalculated annually using 3 years of claims data (excluding the most recent year), so a single bad year affects your premium for 3 years.
NCCI writes class codes and experience MODs for 33 states. Four states are "monopolistic" — they operate their own state-run workers comp fund and do not allow private insurers: Ohio (OH), Washington (WA), Wyoming (WY), and North Dakota (ND). Other states with independent bureaus include California (WCIRB), Pennsylvania (PCRB), Michigan (MWC), Minnesota (MII), Indiana (ICB), New York (NYCIRB), New Jersey (NJCRIB), Wisconsin (WCRB), and Texas (TDI).
Generally no — true independent contractors are not employees and are not required to be covered under your workers comp policy. However, misclassifying employees as contractors is a common compliance problem. Most states use the "ABC test" to determine worker classification. Misclassification penalties include back-premium, fines, and in some states, criminal liability.
At the end of each policy year, the insurer conducts a payroll audit to verify your actual payroll matched the estimated payroll used to set the premium. The auditor reviews payroll records (W-2s, 1099s, general ledger) by class code. If actual payroll was higher than estimated, you owe a true-up payment. If lower, you receive a refund.
Five tactics: (1) Implement a written safety program — insurers discount 5-15% for documented safety training. (2) File small claims out-of-pocket — claims under $1,000 typically cost more in long-term MOD impact than paying out-of-pocket. (3) Build a return-to-work program — light-duty jobs for injured workers reduce lost-time claim duration. (4) Shop the market every 2-3 years — workers comp rates vary widely between insurers. (5) Request a class code review if your operations have changed.
Workers comp covers injuries to YOUR employees while they are working. General liability covers injuries to third parties (customers, visitors, vendors) on your premises or resulting from your operations. A customer slipping in your store is a general liability claim; an employee slipping in the back office is a workers comp claim. Both are typically required for a small business.
Calculations and computational models on QuickBizCalc are verified against published regulatory standards and statutory tax tables:
Publication 15-T (Federal Income Tax Withholding Methods) & Publication 15 (Employer's Tax Guide).
Fair Labor Standards Act (FLSA 29 U.S.C. § 207) regulations on overtime hours, recordkeeping, and minimum wage.
OASDI taxable maximum wage base limits and statutory FICA tax rates (6.2% Social Security + 1.45% Medicare).
Formulas and worked examples are checked against the sources above before publishing. For advice on your own situation, consult a licensed tax professional or accountant.
Quick Reference: Common Class Codes
Rates are illustrative averages. Actual rates vary by state and insurer.
From your policy declarations or class code table
1.0 = average · <1.0 = discount · >1.0 = surcharge
