Business & Finance Business Insurance

How to Determine Texas Workers Compensation Premiums

    • 1). Scroll through the Classification listing from the Texas Workers' Compensation and Employers Liability Manual and find the code for the occupation you want to use to calculate the premium amount.

    • 2). View the Basis of Rates used by the state of Texas by clicking on the most current date link on the Texas Workers' Compensation Rate Guide page. Find the code for the occupation and write down the REL number. The REL number is the relativity number that is used in the rate calculation.

    • 3). Divide the total payroll for the Classification code by 100. Take the sum and multiply it by the REL number. This means that a classification with an REL number of 6.51 and a payroll of $250,000 will result in a premium of $16,275.

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