How is a workers' comp premium calculated?

The core formula is annual payroll divided by 100, multiplied by the classification base rate, multiplied by the experience modifier. Payroll is expressed per 100 dollars because base rates are quoted per 100 dollars of payroll, and the experience mod scales the result up or down based on your claims history.

What is an experience modifier?

The experience modification factor compares your business's actual claims history to the expected average for your industry. A mod of 1.00 is neutral, below 1.00 means better-than-average safety and a discount, and above 1.00 means worse-than-average losses and a surcharge. New or small employers are often rated at 1.00 until they qualify for experience rating.

Does South Dakota have a state workers' comp fund?

No. South Dakota is a private-market state with no monopolistic or competitive state fund, so employers buy workers' compensation coverage from private insurance carriers. Rates are filed through the rating organization, but each carrier can apply its own pricing within that framework.

What if I have multiple job classifications?

Each classification code carries its own base rate, so a business with both office staff and field crews is rated separately for each group. Run this calculator once per classification using that group's payroll and base rate, then add the results together to estimate your total premium.

Is this the exact premium I will pay?

No. This is an estimate of the manual premium. Your final cost also reflects carrier-specific pricing, schedule credits or debits, expense constants, assigned-risk surcharges if applicable, and policy minimums, so treat the figure as a planning baseline and get a formal quote for an exact number.

South Dakota Workers' Compensation Premium Calculator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

A South Dakota workers’ compensation premium follows the standard manual-rating formula used across the United States: payroll per 100 dollars × classification base rate × experience modifier. South Dakota is a private-market state with no state fund, so carriers price within the filed rate framework. This tool applies that formula so you can estimate the annual cost.

How it works

Base rates are quoted per 100 dollars of payroll, and the experience mod scales the result by your claims history:

manual premium = (annual payroll ÷ 100) × base rate × experience mod

An experience modifier of 1.00 is neutral. Below 1.00 reflects a better-than- average safety record and lowers the premium; above 1.00 reflects worse losses and raises it. New or small employers are typically rated at 1.00 until they qualify for experience rating.

Example and notes

A business with 500,000 dollars of payroll in a classification with a base rate of 2.50 dollars and an experience mod of 0.90: the payroll units are 500,000 ÷ 100 = 5,000, so the premium is 5,000 × 2.50 × 0.90 = 11,250 dollars. If you have multiple classifications, run the calculator once per code and add the results. This is a manual-premium estimate — carrier pricing, schedule credits, expense constants, and policy minimums change the final figure, so get a formal quote for an exact number.