New Jersey Workers' Comp Calculator

Workers' Compensation in New Jersey

Workers' compensation insurance is required for most employers in New Jersey. The state base rate index averages approximately $1.33 per $100 of payroll, though actual rates vary significantly by industry classification code and your company's claims history.

Key New Jersey Workers' Comp Facts

• Average Rate: $1.33 per $100 of payroll
• State Minimum Wage: $15.49/hour
• State Fund: Competitive — private insurers available
• Exemptions: Varies by business type and employee count
• Filing Deadline: Must obtain coverage before first employee starts

How New Jersey Workers' Comp Premiums Are Calculated

Your workers' comp premium in New Jersey is calculated using this formula:

Premium = (Payroll ÷ 100) × Class Rate × Experience Mod Rate

• Class Rate: Based on your industry's NCCI classification code and risk level
• Experience Modification Rate (EMR): Your company's claims history vs. industry average (1.0 = average)
• Payroll: Total annual employee wages subject to workers' comp

Highest-Risk Industries in New Jersey

Industries with the highest workers' comp rates in New Jersey include roofing ($8-12 per $100), trucking ($4-6 per $100), and construction ($3-5 per $100). Office and technology workers have the lowest rates, typically under $0.50 per $100 of payroll.

How to Lower Your Workers' Comp Costs

• Safety programs: Implement workplace safety training to reduce claims
• Return-to-work programs: Get injured employees back to light duty faster
• Classify correctly: Ensure employees are in the right class codes
• Shop around: Compare quotes from multiple private insurers
• Pay-as-you-go: Use monthly premium payments based on actual payroll
• Drug-free workplace: Many states offer premium discounts for drug-free programs