Workers Comp Payroll Calculator

Example data table

Formula used

• Annualized payroll = payroll × basis multiplier × (term months ÷ 12) × (1 + growth%).
• Effective payroll = annualized payroll − overtime exclusion − other exclusions.
• Manual premium = (effective payroll ÷ rate basis) × (rate × territory factor).
• Net modifier factor = experience × schedule × safety × deductible × underwriting.
• Premium after minimum = max(manual premium total × net factor, minimum premium).
• Premium after discount = premium after minimum − (discount % × premium).
• Total cost = premium after discount + fees + broker + assessments.

How to use this calculator

1. Pick the payroll basis that matches your wage figures.
2. Set the term and optional payroll growth scenario.
3. Add one row per class with payroll and rate.
4. Use exclusions and overtime settings as needed.
5. Enter modifiers, fees, assessments, and discounts.
6. Press Calculate to view totals and charts.
7. Download CSV or PDF for sharing and review.

Payroll Basis and Annualization

Payroll is captured weekly, biweekly, or monthly, then converted to an annual equivalent for pricing. This calculator annualizes class rows using the payroll basis multiplier, adjusts for the policy term in months, and applies a growth percentage to model hiring or wage inflation. The annualized figure becomes the starting point for exclusions and premium calculations for reporting purposes.

Class Rates and Territory Factors

Workers compensation pricing is class driven. Each row lets you enter a class code, description, payroll, and a rate based on your chosen rate basis. A territory factor can approximate geographic differentials when a carrier splits a class across regions. The adjusted rate equals rate times territory factor, which helps compare the same job duty across sites.

Modifiers, Credits, and Minimum Premium

After annualization, the calculator estimates effective payroll by removing overtime premium portions and other exclusions. Manual premium is computed as effective payroll divided by the rate basis, multiplied by the adjusted rate. A net modifier factor then combines experience modifier, schedule modification, safety credit, deductible credit, and an underwriting factor. Minimum premium enforces a floor when small payrolls would otherwise price too low.

Discounts, Assessments, and Total Cost

Many quotes include plan level discounting and separate charges. You can apply a tiered automatic discount or a manual discount percent, producing premium after discount. The worksheet then adds flat fees such as expense constant, admin fee, and loss constant, plus a broker fee percentage. Assessments can be applied to premium only or to premium plus fees, depending on how your jurisdiction calculates charges.

Audit Scenarios and Payment Planning

Audit results often differ from original estimates because payroll and classifications change. The audit scenario input applies a percentage change to total effective payroll and recalculates an estimated audit total cost using the same modifier structure. For cash flow planning, the payment plan section models a down payment percentage and spreads the remainder across the selected number of installments, giving a practical budgeting view.

FAQs

What does effective payroll mean here?

Effective payroll is annualized payroll minus overtime exclusion and other exclusions. It is the amount used to calculate manual premium because many premium worksheets exclude certain wage portions and non‑auditable payments.

How should I choose the payroll basis option?

Select the cycle that matches your payroll input amounts. Weekly, biweekly, semi‑monthly, and monthly entries are converted to annual equivalents using standard multipliers, then adjusted for the policy term.

When should I use a territory factor?

Use it when the same class is priced differently by location. Enter 1.00 for no change. A value above 1.00 increases the rate, while a value below 1.00 decreases it.

How are assessments calculated?

Assessments can be applied to premium only or to premium plus fees, based on the assessment base option. Percent inputs are multiplied by that base to estimate state assessment, terrorism, and catastrophe charges.

How does the discount setting work?

Discounts apply after the minimum premium test. Choose automatic tiers for a simple estimate or manual percent for a quoted value. The discount reduces premium before broker fees and assessments are added.

What does the audit scenario show?

It applies a percentage change to total effective payroll and recalculates an estimated audit total and delta. This helps you gauge possible additional premium or refund if audited payroll differs from estimates.