Workers' Compensation Savings Calculator
Workers' comp is one of the largest controllable costs for labor-intensive businesses. PEOs pool thousands of employers into a single large-group policy, which can reduce your effective rate by 15 to 25 percent. See what that means for your premium.
How much could my company save on workers' comp?
Workers' compensation is one of the largest controllable costs for labor-intensive businesses. The rate you pay is driven by factors you can influence. Here is how a PEO lowers each one.
Workers' Comp Rates
Your manual rate per $100 of payroll is set by your classification codes and carrier. PEOs negotiate group rates across thousands of employers, which often come in 15 to 25 percent below what a small business pays on its own.
Classification Codes
Correct class codes drive your premium. PEOs audit your codes for accuracy and make sure you are not overpaying because of misclassified roles.
Experience Modification Factor
Your experience mod follows you into the PEO pool. A good PEO helps you manage claims and lower your mod over time, which compounds your savings year over year.
Payroll
Workers' comp premiums are calculated against payroll. Pay-as-you-go PEO billing means your premium tracks your actual payroll each cycle, so you avoid large down payments and year-end audit surprises.
Claims Management
PEOs provide dedicated claims adjusters and return-to-work programs that close claims faster and keep reserves low, which protects your mod and your rates.
Safety Programs
PEOs bring safety training and loss-control resources that qualify you for premium credits and reduce the frequency of claims.
Large-Group Pooling
Small contractors rarely qualify for large-group pricing on their own. The PEO master policy gives you that buying power regardless of your size.
Compliance
PEOs handle your workers' comp coverage, audits, and certificates of insurance, so you stay compliant without the admin burden.
Your savings will appear here
Enter your annual payroll and current workers' comp rate to see how much you could save through PEO group pooling.
How this works
This calculator applies a 20 percent rate reduction to your current workers' comp premium, which represents the middle of the typical 15 to 25 percent savings range PEOs achieve through large-group pooling. Your actual savings depend on your classification codes, experience modification factor, claims history, and the specific PEO carrier. Construction, roofing, and landscaping businesses with high base rates often see the largest dollar savings.