Employers should first learn which factors determine which factors determine workers comp insurance premiums.
Premiums are computed with respect to how employees are coded (classified by type of work they do) and the rate assigned to each employee class code. The workers comp premium rate is expressed as dollars and cents per $100 dollars of payroll for each classification code.
Work Comp Insurance Premiums are calculated using the following equation:
100 X Class Code Rate x MOD (if applicable) = Work Comp Premium