Payroll basis

Why it matters to you

It's why the premium is an estimate until the year ends: you're billed on projected payroll, then an audit trues it up against what you actually paid. Hiring mid-year raises the bill; a slow year lowers it — neither is a surprise if you know the basis.

Where you’ll see it

In workers' comp rates (priced per hundred dollars of payroll), on our cost pages, and in the audit paperwork after the policy year.

Related terms

• Class code (workers' comp)
• Premium
• Experience modification rate (e-mod)