Understanding Workers Compensation Premiums
Workers comp premiums are calculated as: (Payroll / 100) x Classification Rate x Experience Mod x State Factor. The classification code rate varies dramatically by industry - office workers pay about $0.25 per $100 of payroll while roofers may pay $12+ per $100. Your Experience Modification Rate (EMR) reflects your claims history relative to similar businesses.
Reducing Your Premium
Lower your EMR by maintaining a safe workplace and minimizing claims. Implement safety programs for potential premium discounts of 5-15%. Ensure proper employee classification - misclassification can lead to audit penalties. Consider pay-as-you-go plans to improve cash flow.