How do you figure the cost of workman's comp into payroll?

Worker's compensation is calculated by the type of job an employee does. Each job classification is rated by the underwriter according to risk, then the worker's comp premium is multiplied by the gross dollar amounts paid to employees.

An officer of a corporation and other select employees can opt out of worker's comp. Also, if an employee works overtime, the straight time is subject to worker's comp, but the "half" of "time and a half" is not.