Workers compensation

How much does workers' comp cost an employer?

Workers compensation is one of the hardest employment cost components to estimate precisely because pricing depends on job classification, state rules, payroll, carrier underwriting, claims history, and experience modifier.

Planning formula

workers_comp_estimate = (annual_payroll / 100) * rate_per_100_payroll

Why the calculator uses ranges

An office employee and a construction employee can have very different rates even in the same state. The MVP uses role-risk ranges, and users should enter a custom rate when they have an insurance quote or class-code-specific rate.

What to verify

Before hiring, confirm class code, state coverage requirements, pay-as-you-go options, carrier fees, minimum premiums, owner exclusions, and whether your payroll provider can integrate workers compensation reporting.

Run calculator

Check the state before the class code

Workers compensation is priced from state-approved rates, and the rest of the employer bill is state-specific too. Sourced 2026 state guides:

• Texas employer cost guide — $9,000 UI wage base · 2.70% new-employer rate
• Washington employer cost guide — $78,200 UI wage base · employer-specific rate
• Maryland employer cost guide — $8,500 UI wage base · 2.60% new-employer rate
• California employer cost guide — $7,000 UI wage base · 3.40% new-employer rate
• South Dakota employer cost guide — $15,000 UI wage base · 1.75% new-employer rate
• North Dakota employer cost guide — $46,600 UI wage base · 1.00% new-employer rate
• Montana employer cost guide — $47,300 UI wage base · 1.18%–2.18% new-employer range
• Arkansas employer cost guide — $7,000 UI wage base · 2.00% new-employer rate
• Alaska employer cost guide — $54,200 UI wage base · 1.00% new-employer rate
• Idaho employer cost guide — $58,300 UI wage base · 1.00% new-employer rate

See the sortable 2026 SUTA rate and wage base table for all 50 states and DC.