Workers' Compensation from Paychex
Easy, Accurate Workers' Comp Coverage
1:47

Find the Right Workers' Compensation Insurance

As an agent, we can compare rates of well-known carriers and help you find the best workers’ compensation insurance or coverage for your business — either through our top 100 insurance agency1 or our Professional Employer Organization (PEO).

Get a Free Quote

Why Choose Paychex

Beyond being mandatory in most states, there are good reasons to carry workers’ compensation coverage.

  • Non-covered injuries and a decline in employee productivity could affect your bottom line.
  • More than 2.8 million workplace injuries and illnesses were reported by private industry employers and more than 2.2 million cases involved days away from work.2
  • Workers’ compensation coverage could help protect your business from potential liability from employee injury and illness.

What Are the Workers' Compensation Mandates in Your State?

united states map
Content Block

Workers' Compensation

Coverage is mandatory for employers with any employees.

35375

Workers' Compensation

Employers are required to have coverage for three (3) or more employees at one time (including part-time employees) or one (1) or more full-time employees 35 hours of more per week for at least 13 weeks in the preceding 52 weeks.

35380

Workers' Compensation

Coverage is mandatory for employers with any employees.

35387

Workers' Compensation

  • Coverage is mandatory for employers with five (5) or more employees
  • Construction coverage needed at employee No. 1
  • Employee includes all full or part-time employees, officers of a corporation, or members of an LLC

35388

Workers' Compensation

Coverage is mandatory for the employers with any employees.

35393

Workers' Compensation

Coverage is mandatory for employers with five (5) or more employees.

35396

Workers' Compensation

Coverage is optional for all employers.

35397

Workers' Compensation

  • Coverage is mandatory for employers with five (5) or more employees. Corporate officers and LLC members are included in the employee count
  • Contractor coverage is mandatory with one (1) or more employees

35399

Workers' Compensation

  • Coverage is mandatory for employers with five (5) or more employees
  • LLC members and corporate officers are included in employee count provided they meet the definition of employee
  • Exception: All Contractors are required to have coverage regardless of the number of employees

35400

Workers' Compensation

Coverage is mandatory for the employers with any employees.

35401

Workers' Compensation

  • Coverage is mandatory for employers with three (3) or more employees
  • Officers are included in the employee count, even if they are excluding coverage
  • Construction – coverage is needed with employee No. 2
  • All employments in which one or more employee(s) is employed by a sub-contractor or a contractor that uses a sub-contractor for any part of their work

35402

Workers' Compensation

Coverage is mandatory for employers with any employees.

35403

Workers' Compensation

Coverage is mandatory for the employers with any employees.

35404

Workers' Compensation

Coverage is mandatory for the employers with any employees.

35405

Workers' Compensation

Coverage is mandatory for employers with any employees.

35406

Workers' Compensation

Coverage is mandatory for employers with any employees.

35408

Workers' Compensation

Coverage is mandatory for employers with any employees.

35409

Workers' Compensation

Coverage is mandatory for employers with any employees.

35410

Workers' Compensation

Coverage is mandatory for employers with three (3) or more employees. Officers and members are considered in the employee count even though they may be excluded.

35411

Workers' Compensation

  • Coverage is mandatory for employers with four (4) or more employees. Officers are considered employees of a corporation.
  • Contractors are required to carry coverage at employee No. 1.

35412

Workers' Compensation

Coverage is mandatory for all employees and corporate officers.

35414

Workers' Compensation

Coverage is mandatory for employers with one (1) or more employees.

35415

Workers' Compensation

Coverage is mandatory for employers with any employees.

35416

Workers' Compensation

Coverage is mandatory for employers with four (4) or more employees

35417

Workers' Compensation

Coverage is mandatory for employers with any employees.

35418

Workers' Compensation

  • Coverage is mandatory for employers with three (3) or more employees
  • Officers go toward the employee count even if they are excluded
  • Contractors who use sub-contractors; the sub-contractors are counted as employees even if they have their own coverage

35419

Workers' Compensation

  •    Coverage is optional for all employers
  •    Exception: Private employers who contract with government entities. Also, some contractors may require their subcontractors and independent contractors to obtain a policy

35420

Workers' Compensation

Coverage is mandatory for employers with any employees.

35421

Workers' Compensation

  • Coverage is mandatory for all employees
  • Coverage is mandatory for corporate officers and LLC members owning less than 10% of the business shares

35422

Workers' Compensation

Coverage is mandatory for employers with any employees.

35423

Workers' Compensation

Coverage is mandatory for employers with any employees.

35424

Workers' Compensation

Coverage is mandatory for employers with any employees.

35425

Workers' Compensation

Coverage is mandatory for employers with any employees.

35426

Workers' Compensation

  • Coverage is mandatory for employers with any employees
  • Coverage must be obtained through the state

35427

Workers' Compensation

Coverage is mandatory for employers with any employees.

35428

Workers' Compensation

Coverage is mandatory for employers with three (3) or more employees or one (1) or more employees to whom you have paid combined gross wages of $500 or more in any calendar year.

35430

Workers' Compensation

Coverage is mandatory for employers with three (3) or more employees or one (1) or more employees to whom you have paid combined gross wages of $500 or more in any calendar year.

35431

Workers' Compensation

Coverage is mandatory for employers with any employees.

35432

Workers' Compensation

Coverage is mandatory for employers with any employees.

35433

Workers' Compensation

  • Coverage is mandatory for employers with three (3) or more employees
  • Construction must carry coverage
  • Farms are no longer exempt
  • Officers/LLC members go toward employee count even if excluded
  • Construction requires coverage at employee No. 1

35434

Workers' Compensation

Coverage is mandatory for employers with any employees.

35435

Workers' Compensation

  • Coverage is mandatory for employers with any employees
  • Certain licensed contractors are required to obtain coverage or certify as self-insured even if they do not have employees

35436

Workers' Compensation

Coverage is mandatory for employers with any employees.

35437

Workers' Compensation

Coverage is mandatory for employers with any employees.

35438

Workers' Compensation

Coverage is mandatory for employers with any employees.

35439

Workers' Compensation

Coverage is mandatory for employers with any employees.

35440

Workers' Compensation

Coverage is mandatory for employers with any employees.

35441

Workers' Compensation

  • Coverage is mandatory for employers with three (3) or more employee
  • Sole proprietors, partners, and LLC members go toward employee count if they are included
  • Corporate officers go toward employee count regardless of included or excluded

35443

Workers' Compensation

  • Coverage is mandatory if an employer hires individuals to work in the state or has employees working in the state
  • Corporate officers go toward employee count regardless of included or excluded

35445

Workers' Compensation

  • Coverage is mandatory for employers with one or more employees
  • Coverage must be obtained directly through the state

35446

Workers' Compensation

Coverage is mandatory for employers with any employees.

35447

Included in Our Workers' Compensation Coverage

Compare Coverage and Rates To Find the Right Policy

Licensed agents from Paychex Insurance Agency assess your needs, help you find the best coverage options, compare rates, and deliver a complete insurance plan at competitive pricing.

Easy and Transparent Billing Options

Have the premium calculated based on actual payroll each check date,3 or directly pay the workers’ comp carrier in a lump sum or installments. Either way, we’ll be there to service your policy and answer questions.

Monthly Reports Detailing Total Insurance Expenses

Easily accessible monthly and year-end reports demonstrate exactly where you stand with wages, payments, and deductions.

Pay As You Go and Help Improve Your Cash Flow

If you use Paychex payroll, we can calculate your workers’ compensation premiums based on actual wages, not estimates, which helps reduce the risk of unexpected payments and fees that could affect your cash flow.3

Access Your Certificate of Insurance (COI)

Prove your business has an active workers’ compensation, general liability, auto liability, and/or umbrella liability policy in place when needed. We can directly provide your COI in most circumstances.

Contact Us Today!
Customer support agent

Work With Top Workers’ Compensation Insurance Carriers

Our licensed agents can help you get workers’ compensation coverage from top-tier national and regional carriers.

Get Started Today

Get Help Developing a World-Class Safety Program

Maintain a safe work environment with help from our off-site risk management team, including experienced underwriters, loss control specialists, and claims managers, who can:

  • Direct or authorize initial medical treatment
  • Educate injured workers
  • Help ensure timely payment of lost wages
  • Assist with the return to work
client reviewing their safety plan

Putting Workers' Compensation Insurance on the Menu

“We had a different kind of workers' compensation program and I found out very early on that when you don't have an eye on it right throughout the year, it can add up. [Now], we know exactly what we're paying at the end of the year and it's honestly helped us so much for our budgeting.”

— Audrey and Jordan Zybala, Owners, Lago 210

Owner of Lago210 talking about his workers' comp experience with Paychex
How Paychex Helped Lago 210
0:37

Simplify Workers’ Comp and HR With One Solution

Bundle workers’ compensation coverage with employee benefits, payroll, and other HR services to help you:

  • Attract and keep employees
  • Reduce administrative costs
  • Increase productivity and profitability
All-in-One HR
A busy office with employee working together
What Is a PEO
1:24

Technology and Service To Meet Your Needs

From insurance to payroll, HR, and benefits, we offer the support you need to save time, improve accuracy, and help protect your business and employees from costly claims and losses. 

Explore Insurance Options

Cards BOP

Business Owner’s Policy (BOP)

Save money with essential business protection.
Cards commercial auto

Commercial Auto Insurance

Cover expenses due to a work vehicle accident.
A business owner concerned about cyber security

Cyber Liability Insurance

Protect your information and business reputation.
Cards EPLI

Employment Practices Liability Insurance (EPLI)

Protect against employee claims of harassment, discrimination, and more.
Cards general liability

General Liability Insurance

Manage risk and protect the assets of your business.
Cards commercial property

Commercial Property Insurance

Cover your buildings, inventory, and equipment against loss.
A business owner uses a payroll management system to streamline numerous payroll tasks

Payroll Services

Pay your employees easily and accurately, whether you do it yourself or work with one of our payroll specialists.

Manage Risk With More Confidence

Secure important protection for your business and employees with our workers’ compensation coverage.

Get a Free Quote

Workers’ Compensation FAQ

  • Why Do I Need Workers’ Compensation Insurance?

    Why Do I Need Workers’ Compensation Insurance?

    Most states require businesses with employees to carry workers’ compensation insurance to provide benefits to employees for work-related injuries or illnesses. Beyond offering employees health insurance, which doesn’t cover work-related injuries or illnesses, small, midsize, and large businesses need workers’ compensation to protect injured employees and cover these claims. It will also help protect your business from lawsuits and help keep your business compliant with state regulations.

  • How Much Is Workers Compensation Insurance?

    How Much Is Workers Compensation Insurance?

    Workers’ compensation insurance cost varies based on the business size, location, industry, and specific claims history. Also, workers’ compensation rates and requirements vary from state to state. In general, for every $100,000 in payroll, the average workers’ compensation policy ranges from a few hundred to a few thousand dollars per year. Once you have a plan in place, you can incorporate Paychex Payroll with our Workers’ Compensation Payment Service. This can help reduce the chance of additional end-of-year payments by basing your premium calculations each check date on actual wages, not estimates.

  • Does a Small, Midsize, or Large Business Need Workers’ Comp Insurance?

    Does a Small, Midsize, or Large Business Need Workers’ Comp Insurance?

    Most likely yes. In nearly every state, workers’ comp is required, even if a business has just one employee.

  • How Much Is Small, Midsize, and Large Business Workers’ Comp Insurance?

    How Much Is Small, Midsize, and Large Business Workers’ Comp Insurance?

    The average cost of workers’ comp insurance coverage will vary based on your unique small, midsize, or large business, including how much you issue in payroll, where your business operates, your industry, and your claims history. For instance, small business workers’ comp insurance premiums may be lower if most employees work at a desk all day but may be higher if the small business is in the construction or landscaping industry.

  • Who Pays for Workers Compensation Insurance?

    Who Pays for Workers Compensation Insurance?

    Workers’ compensation premiums are paid for by the employer. Premiums are calculated based on the state requirements where the employer does business, the amount of payroll, risk exposure, industry, and type of work — a classification code determined either by the National Council on Compensation Insurance (NCCI) or the state rating bureau for the business.

  • What Are Workers’ Compensation Benefits?

    What Are Workers’ Compensation Benefits?

    Workers’ compensation benefits are employee compensation and/or benefits for medical care, wage replacement, rehabilitation, and other assistance as a direct result of injury or illness while on the job (see question below for specifics). Each state determines the amount and duration of worker compensation benefits and how they are administered.

  • What Are the Four Types of Workers’ Compensation Programs?

    What Are the Four Types of Workers’ Compensation Programs?

    According to the U.S. Department of Labor, the four main types of workers’ compensation programs are:

    • Wage replacement benefits: Also known as disability benefits, wage replacement covers a percentage of the employee’s wages if they are unable to return to work temporarily or permanently.
    • Medical treatment: The costs for treatments related to the employee’s workplace injury or disability.
    • Vocational rehabilitation: Assistance to help employees who have been injured or disabled to return to work, including training, career counseling, and assistance finding a new job.
    • Other benefits: Includes death benefits paid to families if the employee dies from injury or illness.
  • How Much Is Workers Compensation Insurance for Contractors?

    How Much Is Workers Compensation Insurance for Contractors?

    If you’re self-employed or a sole proprietor, check to see if your state requires you to carry workers’ compensation coverage. Insurance premiums will vary based on factors such as your location, payroll, claims history, and job classification.

  • Which Types of Employees Are Generally Not Covered by Workers’ Compensation Programs?

    Which Types of Employees Are Generally Not Covered by Workers’ Compensation Programs?

    States outline their own exclusions from workers’ compensation coverage, but generally independent contractors, freelancers, and volunteers aren’t automatically covered.

  • Is It Illegal Not To Have Workers’ Comp Insurance?

    Is It Illegal Not To Have Workers’ Comp Insurance?

    Find out if your state requires you to carry insurance for workers’ compensation. If your small, midsize, or large business doesn’t have it but is required to, you could be subject to costly penalties, which vary from state to state, or even jail time. Beyond workers’ compensation laws, it’s still a good idea to secure a policy from a workers’ compensation insurance company to protect you, your business, and your employees.

  • Does Workers’ Compensation Come out of Your Paycheck?

    Does Workers’ Compensation Come out of Your Paycheck?

    Workers’ compensation insurance premiums are paid by the employer in a lump sum or installments. In certain cases, businesses may base their premium payments on actual wages by pairing their policy with their payroll processing, so a specific amount is withdrawn from their payroll account each payday. Workers’ compensation insurance premiums are paid by the employer in a lump sum or installments. In certain cases, businesses may base their premium payments on actual wages by pairing their policy with their payroll processing, so a specific amount is withdrawn from their payroll account each payday.

Additional Resources for Your Business

2-Minute Assessment for Business Leaders

Management

 • 

Guide

 • 

6 min. Read
An owner of an LLC looks into requirements for his business' beneficial ownership information reporting

Court Temporarily Blocks Law Requiring Beneficial Ownership Information Reporting

Compliance

 • 

Article

 • 

6 min. Read
Top Regulatory Issues of 2025: What Business Should Know and Prepare For

Top Regulatory Issues of 2025: What Businesses Should Know and Prepare For

Compliance

 • 

Article

 • 

6 min. Read
View All Resources

Join 745,000+ Customers and Get Help Managing HR, Payroll, and Benefits

Request Pricing
Find Your Solution