What is the workers' compensation base rate in New Hampshire?
The workers' compensation base rate is the dollar amount the state uses to calculate premium charges for employers. In New Hampshire, the base rate is set annually by the Workers' Compensation Board and is expressed as a dollar amount per $100 of payroll for each classification of work.
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How the base rate is determined
Each year the Board reviews the state's overall loss experience, medical cost trends, and the reserve fund balance. These factors shape the base rate, which is then adjusted to reflect changes in the cost of claims and inflation. The resulting figure applies uniformly across all employers, while individual premium amounts vary based on the employer's specific payroll and classification codes.
Key components that affect an employer's premium
Even though the base rate is the same for everyone, actual premiums differ because of three main components:
- Payroll amount – The total covered payroll for each classification, reported in $100 units.
- Classification code – Each type of work has a risk class with a specific rate multiplier.
- Experience modification factor (EMR) – A score that reflects an employer's past claim history compared with industry averages.
Typical classification examples
Below is a snapshot of common New Hampshire classifications and their relative rate multipliers. The base rate is applied to the payroll, then multiplied by the class multiplier.
| Classification | Rate multiplier | Typical industry |
|---|---|---|
| 5410 – Office Employees | 0.5 | Administrative, clerical |
| 7010 – General Construction | 3.0 | Builders, contractors |
| 8800 – Retail Sales | 0.7 | Stores, boutiques |
How to calculate a sample premium
Assume the 2024 base rate is $0.86 per $100 of payroll. A small retail shop with $150,000 annual payroll classified under 8800 (multiplier 0.7) and an EMR of 1.00 would pay:
Premium = Base Rate × Payroll Units × Multiplier × EMR
Payroll units = $150,000 ÷ $100 = 1,500
Premium = $0.86 × 1,500 × 0.7 × 1.00 = $903
This simple formula shows how payroll size, classification, and experience combine with the base rate to determine cost.
Staying compliant and managing costs
Employers should file accurate payroll reports each year, maintain proper classification of workers, and implement safety programs to improve their EMR. A lower EMR can reduce premiums even when the base rate rises. Additionally, reviewing the annual notice from the Board ensures you are aware of any changes to the base rate or classification schedules.