How is a workers' comp premium calculated?

The core formula is payroll divided by 100, multiplied by the class code base rate, multiplied by the experience modification factor. Payroll is divided by 100 because rates are quoted per $100 of payroll. The experience mod adjusts the premium up or down based on your claims history.

What is the class code base rate?

Every job classification (clerical, roofing, trucking, etc.) has a base rate expressed as dollars per $100 of payroll. Riskier classifications carry far higher rates — a roofing code can be ten or more times a clerical code. Your insurer assigns codes based on the actual work performed.

What is an experience modifier?

The experience modification factor (or e-mod) compares your business's past claims to the average for similar businesses. A mod of 1.0 is average, below 1.0 means fewer claims than expected (a discount), and above 1.0 means more claims (a surcharge). New small employers often default to 1.0.

Is workers' comp required in Kansas?

Most Kansas employers with a gross annual payroll above the statutory threshold must carry workers' compensation coverage, with limited exceptions for certain agricultural and very small employers. Coverage can be obtained from private carriers or, for hard-to-place risks, through the assigned-risk pool.

Does this estimate include all premium charges?

No. This is the manual premium estimate. Final premium can also reflect schedule credits or debits, premium discounts for size, expense constants, terrorism charges, and state assessments. Treat this as a planning figure and get a formal quote for an exact cost.

Kansas Workers' Compensation Premium Calculator

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Estimating a Kansas workers’ comp premium

Workers’ compensation premium in Kansas follows the standard rating formula used nationwide. It depends on three things: your annual payroll, the base rate for your job classification code (quoted per $100 of payroll), and your experience modification factor, which rewards or penalizes you for your claims history. This calculator multiplies them together to estimate both the base and the modified premium.

How it works

base premium     = (annual payroll / 100) x class base rate
modified premium = base premium x experience modifier

Payroll is divided by 100 because workers’ comp rates are always expressed per $100 of payroll. The experience modifier (e-mod) is centered on 1.0: a mod of 0.85 cuts premium 15%, while 1.20 adds 20%. New employers typically start at 1.0 until they build a claims history.

Example and notes

A landscaping company has $400,000 in annual payroll, a class base rate of $6.50 per $100, and an e-mod of 0.95. Base premium is 400,000 / 100 x 6.50 = $26,000. Applying the 0.95 mod gives a modified premium of $24,700.

This is a manual-premium estimate. Real policies can layer on schedule credits, premium discounts for larger accounts, expense constants, and state assessments, and multiple class codes are common when employees do different work. Use this for planning and get a formal quote from a Kansas-licensed carrier for an exact number.