| Class Code | Description | Rate / 100 | Loss Cost / 100 | Estimated Payroll | Audited Payroll | Est Emp | Aud Emp | OT Excl % |
|---|---|---|---|---|---|---|---|---|
| 8810 | Clerical office employees | 0.12 | 0.08 | 250,000 | 275,000 | 6 | 7 | 0 |
| 8742 | Outside salespersons | 0.28 | 0.20 | 120,000 | 110,000 | 3 | 3 | 0 |
| 5606 | Contractor—project manager | 6.50 | 4.40 | 90,000 | 105,000 | 1 | 1 | 10 |
- Effective rate = rate, or loss cost × LCM.
- Payroll cap = min(payroll, employees × cap), if set.
- Adjusted payroll = capped payroll × (1 − overtime exclusion%).
- Class premium = (adjusted payroll ÷ 100) × effective rate.
- Modified premium = class total × experience × (1 + schedule%).
- Credits/surcharge adjust modified premium before discounts.
- Base premium = after discount + expense constant + policy fee, then minimum premium.
- Fees = base × (assessments% + terrorism% + catastrophe%).
- Tax = (base + fees + broker fee) × tax%.
- Audit difference = audited total − estimated total.
- Add each payroll class you report to your carrier.
- Enter rate per 100, or use loss cost mode.
- Provide estimated and audited payroll and optional employees.
- Set modifiers, credits, surcharge, and optional discount details.
- Add fees, policy fee, broker fee, and tax when relevant.
- Submit to see the audit summary above the form.
- Export CSV or PDF for documentation and review.
Workers’ compensation audits commonly move premiums because payroll classifications shift, overtime exclusions are applied inconsistently, or subcontractor labor is recharacterized as uninsured. This calculator quantifies those drivers by class, showing estimated versus audited premium and the resulting difference. Use it to spot classes with the largest delta, then validate supporting payroll records and job descriptions before the carrier finalizes the audit bill.
The class table lets you enter multiple class codes with separate rates and payroll totals. For each row, premium is calculated as (adjusted payroll ÷ 100) × effective rate. Adjusted payroll can reflect overtime exclusion percentage and optional payroll caps per employee. This structure supports multi-department operations where clerical, sales, and field roles are priced differently.
Policy-level modifiers can materially change the final cost. Experience modifier and schedule credit/debit are applied to the summed class premium. Optional credits—safety, deductible, managed care, and drug-free—reduce premium before discounts, while surcharges increase it. The calculator exposes the combined effect, helping finance teams reconcile carrier worksheets against internal expectations.
Real invoices often include expense constants, policy fees, assessments, and taxes. This tool layers those items after rating adjustments and enforces a minimum premium when configured. By separating percent-based fees from flat charges, the calculator clarifies whether an audit change is driven by payroll, rating factors, or mandatory state charges.
The interactive graph highlights classes where audited premium diverges from estimated premium, including per-class deltas on a secondary axis. Export CSV for spreadsheet tie-outs and PDF for audit files. A practical workflow is: calculate, validate the top three delta classes, document corrections, then rerun the model to estimate the final premium impact before payment or dispute.
1) What does “effective rate” mean here?
Effective rate is either the entered rate per 100, or loss cost per 100 multiplied by the LCM when loss-cost mode is enabled.
2) How is overtime exclusion handled?
This tool reduces payroll by the overtime exclusion percentage before applying the class rate. Carrier rules vary, so confirm your jurisdiction’s overtime treatment.
3) What are payroll caps per employee?
If you enter a cap and employee counts, payroll is limited to employees × cap for each class. Use this only when your policy’s rules permit capped payroll.
4) How do credits and surcharges apply?
Credits are combined and applied to modified premium before any premium discount. Surcharge is applied after credits, then discounts, then flat charges and fees.
5) Can I include subcontractor payroll?
Yes. Enter subcontractor estimated/audited payroll, choose an inclusion percentage, and set a subcontractor rate per 100. If the rate is zero, no subcontractor premium is added.
6) Are CSV and PDF exports carrier-ready?
They are designed for internal reconciliation and documentation. Always validate the final audit bill against the carrier’s official rating worksheet and state-specific rules.