To determine an employer’s workers’ comp premium, a calculation is made from several rating elements.
The formula includes the carrier’s manual rate (a dollar amount based on the business class code) per $100 of payroll. This number is multiplied by the experience modifier or MOD. Adjustments are factored in such as premium discounts and scheduled credits or debits applied at the discretion of the underwriter. Finally, state taxes and fees are added to come up with a premium.back