| Example of Calculating a Firm's Premium Rate |  | |
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An example of calculating the 2007 rates for a firm that is classified in risk class 1007, Grading, Inspection Bureaus/Forestry Services, N.O.C. with an experience factor of 0.9789.
| Rate calculation | ||
|---|---|---|
| Accident Fund Base Rate | $0.4244 | (a) |
| Medical Aid Fund Base Rate | $0.2189 | (b) |
| Accident + Medical Aid Base Rate | $0.6433 | (c) = (a) + (b) |
| Firm's Experience Factor | $0.9789 | (d) |
| Firm's Accident + Medical Experience Rate | $0.6297 | (e) = (c) × (d) rounded to four decimals |
| Supplemental Pension Rate | $0.0668 | (f) |
| Firm's Composite Rate | $0.6965 | (g) = (e) + (f) |
| Premium calculation assuming 1,000 hours worked | ||
| Premium | $696.50 | (h) = 1,000 × (g) |
| Employee portion of the rate | ||
| Firm's Employee Portion | $0.14055 | (i) = 0.5 × (b) × (d) + 0.5 × (f) |
Rows (a) and (b) are the 2007 Accident and Medical Aid Fund Base Rates for risk class 1007.
To calculate the premium rate:
- Add rows (a) and (b) together to get row (c).
- Multiply row (c) by the firm's experience factor in row (d) and round the result to four decimal places to get row (e).
- Add row (e) and the Supplemental Pension rate in row (f) to get row (g) (the Supplemental Pension rate is not multiplied by the experience factor).
The workers' compensation premium paid to L&I is calculated by multiplying the Firm's Composite Rate in row (g), $0.6965 by the 1,000 hours worked which equals $696.50, in row (h).
The Employee Portion of the rate, which is withheld from the employee's wages for each hour worked, is calculated on row (i) is one half of the experience rated Medical Aid Fund rate plus one half of the Supplemental Pension Fund rate which equals $0.14055.
If this firm had more than one risk class, then a similar calculation would be done with each class.
If you need any help please contact your firm's Account Manager whose phone number is on your rate notice.
See the Experience Rating page for more information about Experience Factors.
