How is a workers' comp premium calculated in Arkansas?

The core formula is payroll divided by 100, multiplied by the class-code rate, multiplied by your experience modifier. The class rate is expressed per $100 of payroll, so a $0.75 rate on $500,000 of payroll is a $3,750 manual premium before the modifier.

What is an experience modifier?

The experience modification factor (mod) adjusts your premium based on your claims history versus similar employers. A mod of 1.00 is average, below 1.00 earns a credit (lower premium), and above 1.00 is a surcharge. New employers usually start at 1.00.

Where do I find my class-code rate?

Your insurance carrier or agent assigns classification codes (NCCI codes) to your work and lists the rate per $100 of payroll on your quote or policy. Riskier work like roofing carries a much higher rate than clerical office work.

Does Arkansas use a state fund or private carriers?

Arkansas workers' compensation is provided through private insurance carriers and self-insurance, regulated by the Arkansas Workers' Compensation Commission; there is no exclusive monopolistic state fund. Rates are filed by carriers based on NCCI loss costs.

Is this an exact premium?

No, it is an estimate of the basic premium. Final cost also reflects carrier expense loadings, schedule credits/debits, minimum premiums, assessments, and payroll audits. Get a formal quote from a licensed Arkansas carrier or agent.

Arkansas Workers' Compensation Premium Calculator

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The Arkansas Workers’ Compensation Premium Calculator estimates the annual cost of workers’ comp insurance for an Arkansas employer. Workers’ comp pricing follows a well-defined formula built on three inputs: the class-code rate (cost per $100 of payroll for the type of work), your annual payroll, and your experience modifier (a multiplier reflecting your claims history). Arkansas uses private carriers rather than a monopolistic state fund, with rates based on filed loss costs.

How it works

Premiums are priced per $100 of payroll, because payroll is the best available proxy for exposure to on-the-job injury. The basic calculation is:

manual_premium   = (annual_payroll / 100) x class_rate
modified_premium = manual_premium x experience_mod

The class rate varies enormously by occupation — clerical work might be under $0.50 per $100, while roofing or logging can exceed $15 per $100. The experience modifier then rewards or penalizes your record: a mod of 1.00 is average, 0.85 is a 15% credit, and 1.20 is a 20% surcharge. The result is your estimated annual premium before carrier-specific loadings.

Example and notes

A landscaping firm with a class rate of $4.50 per $100, $400,000 in annual payroll, and a 0.92 mod has a manual premium of $18,000 and a modified premium of about $16,560. Lowering the mod through a strong safety record directly cuts the bill.

This is the basic premium only. Real quotes also apply expense constants, schedule credits and debits, minimum premiums, and end-of-year payroll audits that true up the cost to actual wages paid. Use this to budget and compare; get a binding figure from a licensed Arkansas agent.