How do I calculate my workers' compensation rate?

In Washington, the rate for workers’ compensation is determined by two factors: the type of job and the employer’s industry rate. Each job is assigned an injury risk rating by the state which then uses a system of classifications to determine the rate for each employer. This classification is based on the average number of claims and costs that an employer has had over the past three years. To calculate the rate, the employer must first look at the state’s injury risk rating for their business’s type of work. The risk rating reflects the expected frequency and severity of the workplace injuries that may occur in the industry. Then, the employer must plug in their experience modification rate, which is the rate based on the employer’s specific claims history. This number reflects the employer’s history of claim costs, frequency, and types. The employer’s rate is then determined by multiplying the experience modification rate number and the respective state risk rating. The rate will be expressed as a percentage and then multiplied by the wages earned by each employee. This rate will give the employer an estimate for what the workers’ compensation rate will be for the year.

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