Employer premiums by class code — and what injured workers actually receive
$—
Employer Premium /yr
$—
Worker's Weekly Check if Injured
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Wage Replacement Rate
Benefit type
What it pays
Workers' compensation is a century-old trade: employees injured on the job receive medical care and wage replacement without proving fault; employers, in exchange, gain immunity from injury lawsuits. Every state (except Texas' opt-out) mandates it once you hire, and its pricing is refreshingly mechanical: payroll ÷ 100 × class-code rate × experience mod. This calculator runs both sides — what coverage costs an employer, and what an injured worker actually receives.
The Employer Side: Premium Mechanics
Class code (examples)
Rate per $100 payroll
On $300k payroll
8810 — Clerical/office
$0.20–0.50
~$1,000/yr
Restaurant/retail codes
$1.00–2.50
~$4,500
Light trades (electricians, plumbers)
$3.00–6.00
~$13,500
5551 — Roofing
$8.00–20.00+
~$36,000
Classification is the lever: misclassified clerical staff paying roofer rates is the #1 audit finding in both directions — verify every employee's code, and separate payroll records by duty when work is mixed.
The experience mod (~0.75–1.5) is your claims report card, rating three years of losses against industry expectation. It follows you between insurers — the return-to-work and safety programs that lower it are the only durable premium reduction.
Owners can often exclude themselves (sole props/partners default-out, corporate officers can elect out in most states) — a legitimate saving with an obvious catch: your own injuries are then on your health insurance, which typically excludes work injuries. Freelancers hired as 1099s aren't covered either — and misclassifying employees as 1099s to dodge comp is the felony-adjacent version of the audit finding.
The Worker Side: What Benefits Look Like
Medical: 100% of injury-related care, no deductibles or copays, indefinitely — the most complete coverage in American healthcare, when the claim is accepted.
Wage replacement: typically two-thirds of your average weekly wage, tax-free, capped by state maximums that range from ~$600 (MS) to ~$1,800+ (IA). Tax-free 66% ≈ 80–90% of former take-home for median earners; high earners hit the caps hard.
Permanency awards: impairment ratings convert lasting damage to scheduled payments — the arena where representation changes outcomes most.
The worker's rules of survival: report the injury immediately (deadlines run in days), see authorized providers, follow restrictions exactly, and get an attorney (contingency, state-capped fees) the moment a serious claim is disputed — insurers' first denial is a negotiating position, not a verdict.
Cutting Premiums Without Cutting Corners
Audit classifications yearly and payroll caps on owner/officer wages.
Return-to-work programs — modified light duty ends wage-replacement clocks and slashes the mod; it's the single highest-ROI safety policy.
Shop it: state funds, PEOs (bundling comp with payroll for small firms), and pay-as-you-go policies (premiums off actual payroll runs, killing audit surprises) compete hard for clean-mod small businesses.
How to Use the Calculator
Employer: enter payroll, the closest class proxy, and your mod — read the annual premium.
Worker: enter the average weekly wage and your state's cap tier — read the tax-free weekly benefit.
Both numbers are the system working as designed; the note explains the bargain behind them.
Frequently Asked Questions
Do I need workers' comp for my first employee?
In nearly every state, yes — from employee #1 (a few states exempt 2-4 or fewer). Going bare exposes you to uncapped personal liability for injuries PLUS state penalties. Even where exempt, one uninsured back injury can end a small business.
Are 1099 contractors covered?
No — and that's the audit trap: states apply control-and-economics tests, and 'contractors' who work like employees get reclassified with back-premiums and penalties. In construction, many states require comp for subs regardless; GCs demand certificates for exactly this reason.
Can an injured worker sue their employer instead?
The grand bargain says no — comp is the exclusive remedy, regardless of employer negligence (narrow exceptions for intentional harm). Workers CAN sue third parties (equipment makers, other contractors), which is where injury attorneys look.
Why is my experience mod above 1.0 and what does it cost?
Your three-year claims history exceeds your industry's expectation; the mod multiplies every premium dollar. Frequency hurts more than severity — five small claims outweigh one big one. Return-to-work programs and claims management are the fix; time is the healer (claims age off after 3 years).
Is the wage-replacement check really tax-free?
Yes — federal and state — which is why 66% replacement approximates most workers' take-home. High earners above state caps feel real gaps; disability-insurance supplements exist for them.
What if my claim is denied?
Appeal — denial rates on initial filings are high and reversal rates on represented appeals are too. Deadlines are short (report within days, appeal within weeks); state comp boards run the process and attorney fees are contingency-based and capped.
Is my information private?
Yes — every figure computes locally in your browser.
Employers: classify honestly, work the mod, and price the coverage as the payroll tax it effectively is. Workers: report fast, follow the process, and remember the system owes you benefits without proving anyone wrong — that was the deal.