Frequently Asked Questions
Workers’ compensation (workmans’ comp) provides benefits to employees who are injured at work. An employee may be entitled to receive wages for lost time and medical care as well as a death benefit.
Each industry or business has been assigned a classification code for purposes of workers’ compensation. There are approximately 700 class codes throughout the country and the description may vary slightly by state. Typically they are 4 digits except Pennsylvania which are 3 digits.
Example: ABC Plumbing Co. has 2 classifications for their employees, plumbers and office staff. To determine an estimated premium, first, divide the base rate(s) by 100 and then multiply by the estimated payroll.
Depending on the insurance company or agent, the most common payment method is referred to as direct bill. This requires a deposit or down payment and monthly installments.
The other option is referred to as Pay As You Go, which reduces or eliminates the typical down payment and allows business owners to pay their premiums based on their actual payroll each cycle.