Workers’ compensation premiums are calculated based on the gross annual payroll you pay to employees.
The more payroll expenses you have the higher your workers’ compensation coverage premiums. Further, your premiums are also impacted by your claim history – the more injury claims a business has, the more likely your premiums will increase.
Finally, your premiums are impacted by your experience modifier. The modifier adjusts your premium rates based on a comparison of past losses of the employer, to what the average losses are for other employers in your state in the same line of business.