Workers Comp Calculator 2026

Estimate your workers compensation insurance premium by state and job classification.
Based on approximate NCCI rates per $100 payroll. All 50 states.

Last updated: September 2026 — rates sourced from IRS, SSA & state revenue departments
Workers Comp Details NCCI Rates
Based on approximate NCCI class codes and national base rates
$
Total wages paid to employees in this job class for the year
1.00 = average claims history. Under 1.0 = better than average (discount). Over 1.0 = worse (surcharge). New businesses use 1.00.
NCCI Base Rates Reference
Job Classification Rate / $100 Per $100k Payroll
Clerical / Office (8810)$0.18$180
Retail Store (8017)$0.90$900
Restaurant / Food Service (9082)$1.40$1,400
Healthcare Support (8835)$1.80$1,800
Warehouse / Distribution (8232)$1.90$1,900
Manufacturing / Light Industrial (3632)$2.10$2,100
Landscaping / Grounds (0042)$6.80$6,800
Construction / Carpentry (5645)$8.50$8,500

How workers comp premiums are calculated in 2026

Workers compensation insurance premiums are calculated per $100 of annual payroll, using class code rates set by NCCI (National Council on Compensation Insurance) or state-specific rating bureaus. The formula is: (Annual Payroll ÷ 100) × Rate × E-Mod = Premium.

Rates vary enormously by risk level. A $250,000 clerical payroll costs roughly $450/year in workers comp; a $250,000 construction payroll costs roughly $21,250/year at the same base rates. High-risk industries like roofing, logging, and demolition can exceed $20–$30 per $100 payroll.

For total employer payroll costs including FICA match, FUTA, and SUTA, see the Employer Tax Calculator. For employee take-home calculations, see the Payroll Tax Calculator.

Results Annual Estimate

Select your state, job class, and annual payroll, then click Calculate to estimate your workers comp premium.

Disclaimer: Premium estimates are based on approximate NCCI national base rates and state adjustment factors. Actual premiums depend on your specific insurer, experience modification factor, payroll audit, and state rate filings. Not a substitute for an insurance quote.

FAQ

Workers comp questions answered

Several strategies can reduce your workers comp premium: (1) Improve your E-Mod by implementing safety programs and reducing workplace injuries — a 0.85 E-Mod saves 15% on premium. (2) Accurate employee classification — ensure employees are in the correct, lowest applicable class code. (3) Return-to-work programs — modified duty work reduces claims costs and improves your experience rating. (4) Pay-as-you-go policies — match premium payments to actual payroll to avoid overpayment and large year-end audits.
Several states operate their own rating bureaus and do not use NCCI: California (WCIRB), New York (NYCIRB), New Jersey (NJCRIB), Pennsylvania (PCRB), Massachusetts (WCRIB), Minnesota (MWCIA), Michigan (CAWCB), Wisconsin (WCCA), and Texas (TDIWC). Washington, Wyoming, Ohio, and North Dakota are "monopolistic states" where workers comp is provided exclusively by a state-run fund — private insurance is not permitted. Rates in these states may differ significantly from NCCI estimates.
Generally no — workers comp coverage is for W-2 employees, not independent contractors. However, worker misclassification is a major audit risk. If a state determines that someone classified as a 1099 contractor should be classified as a W-2 employee, the employer can owe back premiums, fines, and penalties. Some states (like California under AB5) have strict tests for independent contractor status. When in doubt, consult a labor attorney before classifying workers as contractors to avoid workers comp liability exposure.

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