New Jersey Workers' Comp Rate Calculator

Workers' comp in New Jersey: what's different

New Jersey prices workers' comp through its own rating bureau, not NCCI. The Compensation Rating and Inspection Bureau (NJCRIB) is made up of every insurer licensed to write the coverage, and it files one set of class codes and manual rates for approval by the Commissioner of Banking and Insurance. Insurers must write policies on those approved rates. The Division of Workers' Compensation, part of the Department of Labor and Workforce Development, enforces the coverage mandate and handles claims, and it says plainly that rate setting is outside its jurisdiction. New Jersey has no state fund.

Who must carry coverage

The Division's rule is simple: if anyone performs services for pay, the business needs a policy or approved self-insurance. How the owners count depends on the business form:

• Corporations. Officers are employees under N.J.S.A. 34:15-36. The Division's employer guide says there is no minimum payroll and no single-officer exemption, so a one-person corporation that pays its owner must insure.
• Partnerships and LLCs. A policy is required once anyone other than the partners or members works for pay. Partners and members may be covered if the business elects it, and the statute allows that election only when the policy is bought or renewed.
• Sole proprietors. The owner is not counted, but any other paid worker triggers the requirement. The owner can elect coverage too.
• Family members. For partnerships, LLCs, and sole proprietorships, the Division's guide says family members are not excluded.

The statute leaves out casual employment and workers covered by the federal Longshore and Harbor Workers' Compensation Act. A written contract calling someone an independent contractor does not settle the question; the Division says courts apply a "control test" and a "relative nature of the work" test, and either one can make the worker an employee. An out-of-state employer may need New Jersey coverage if the contract of hire was made in New Jersey or the work is done here.

Contractors should note one rule in the penalty statute. A contractor that hands work to an uninsured subcontractor becomes liable for compensation owed to that sub's injured employees, with a right to seek reimbursement from the sub.

Where coverage comes from

There are two routes. You can buy a policy from a stock or mutual carrier licensed in New Jersey; the Division counts more than 400 such companies. Or you can apply to the Commissioner of Banking and Insurance to self-insure, showing financial ability and a permanent business, and security may be required. State law also lets 10 or more licensed hospitals pool their liabilities as a self-insured group. Public employers must provide benefits but are not required to buy a policy.

Who sets rates

N.J.S.A. 34:15-88 says no classification, basis rate, or merit or schedule rating plan takes effect until the Commissioner approves it, and insurers may not write coverage except on those approved terms. N.J.S.A. 34:15-90.1 adds that no insurer may write this line unless it is a NJCRIB member. Rates are full manual rates per $100 of payroll, revised each January 1 for new and renewal policies.

The Department of Banking and Insurance approved a 4.3% statewide decrease effective January 1, 2026. The contracting group averaged a 3.8% cut, and NJCRIB's manual for that year has 550 classifications. On September 23, 2026, NJCRIB filed for a 1.3% reduction effective January 1, 2027. NJCRIB's circulars through October 8, 2026 announce no decision on that filing, so treat it as pending.

Every policy also carries a Second Injury Fund surcharge, applied to modified premium. For 2026 it is 3.75%, and the Uninsured Employers' Fund surcharge is 0.00%.

Experience rating

NJCRIB calculates experience modifications under the New Jersey Experience Rating Plan. Its experience rating booklet (2018 edition) says a risk qualifies with average annual premium of $2,000, which works out to $6,000 over the three-year experience period, and that rating is mandatory for every employer that qualifies. The booklet calls that threshold one of the lowest in the country.

If no insurer will write you

The New Jersey Workers Compensation Insurance Plan is the market of last resort, and NJCRIB administers it. NJCRIB's main role in the Plan is to designate an insurer for an employer that cannot buy coverage voluntarily. Applications go through NJCRIB's Online Assigned Risk (OAR) system. Plan coverage carries extra cost: NJCRIB's cost booklet says Plan policies get no premium discount and no schedule rating, and most carry a Plan Premium Adjustment Program charge of at least 20% of standard premium. The Plan held 18,833 risks on September 30, 2026.

Penalties for going uninsured

• Criminal. Failing to insure is a disorderly persons offense. A knowing failure is a fourth-degree crime. The same applies to misreporting employees as independent contractors or giving false information about how many employees you have.
• Stop-work order. When the Division's Director finds a knowing violation, a stop-work order must issue within 72 hours and stays until you comply and pay. You may ask for a hearing within 10 days, and a decision is due within 48 hours of the request. Ignoring the order costs $1,000 to $5,000 per day.
• Daily penalties. After 10 consecutive uninsured days, the Director imposes up to $5,000, plus up to $5,000 for each further 10-day period.
• Personal exposure. Active corporate officers, including the president, vice president, secretary, and treasurer, are liable for the failure to insure. The Division adds that these penalties cannot be discharged in bankruptcy.
• Injured workers. The Uninsured Employers Fund pays medical bills and temporary disability for uninsured cases, but not permanent disability. Payments and awards are docketed as liens against the employer in Superior Court.

Your ongoing obligations

• Post the notice. Keep the Department of Banking and Insurance notice of coverage, naming your insurer, posted where workers can see it. Your insurer supplies it.
• Report injuries fast. Tell your carrier or third-party administrator right away. The carrier must file the "first notice of accident" electronically with the Division through NJCRIB within three weeks of learning of it. The carrier's final report is due within 26 weeks after the worker is able to return to work or reaches maximum medical improvement.
• Prove coverage with your annual report. Corporations, LLCs, and other entities that file an annual report with the state must include valid proof of workers' comp coverage. Without it the report counts as not filed.

Worked example: how the calculator estimates premium

Premium = (payroll / 100) x rate per $100 x experience mod

New Jersey class 5551 is "Roofing - All Kinds & Drivers." NJCRIB's manual rate for it is $25.334 per $100 of payroll, effective January 1, 2026. This is a full manual rate, not a loss cost, so no carrier multiplier applies. The payroll and mod below are hypothetical.

• Hypothetical roofing payroll: $300,000
• Class 5551 manual rate (effective January 1, 2026): $25.334
• Hypothetical experience mod: 1.08

Step by step

1. Payroll in hundreds: $300,000 / 100 = 3,000
2. Manual premium: 3,000 x $25.334 = $76,002.00
3. Apply the mod: $76,002.00 x 1.08 = $82,082.16

The calculator stops there. A real 2026 policy would add the 3.75% Second Injury Fund surcharge ($3,078.08 in this example), a $160 expense constant, and terrorism and catastrophe charges of $0.03 and $0.01 per $100 of payroll ($120 here; insurers may charge more than $0.03 for terrorism). Outside the Plan, a voluntary policy this size would also get a premium discount on standard premium above $10,000.

Frequently asked questions

Official sources

• NJ Division of Workers' Compensation, Employer Requirements
• NJ Division of Workers' Compensation, FAQs for Employers and Insurance Carriers
• NJ Division of Workers' Compensation, An Employer's Guide to Workers' Compensation in New Jersey (WC-373)
• NJ Division of Workers' Compensation, Workers' Compensation Law compilation (rev. December 15, 2025)
• NJ Legislature, Revised Statutes text file (N.J.S.A. 34:15-36, -77, -78, -79, -79.1, -80, -88, -90.1, -90.2, -96, -98)
• NJ Department of Banking and Insurance, Self-Insurance
• NJCRIB Circular No. 2510 (January 1, 2026 rates)
• NJCRIB Circular No. 2527 (January 1, 2027 filing)
• NJCRIB Circular No. 2528 (Plan update, October 8, 2026)
• NJCRIB Bulletins and Circulars
• NJCRIB Rate and Classification Handbook, Numerical Order, effective January 1, 2026
• NJCRIB, How to Determine the Cost of a Workers Compensation Insurance Policy (2018)
• NJCRIB, Exploring Experience Rating (2018)
• NJCRIB, Online Assigned Risk (OAR)

Sources accessed 2026-10-17.

This is general information, not legal advice. Confirm details with the New Jersey Department of Labor and Workforce Development, Division of Workers' Compensation.

Reviewer: Sam Newland, CFP, Founder of Benefitra. Last updated October 17, 2026. How the calculator works. Editorial policy.