The amount an employer pays for workers’ compensation depends on the insurance that they have. Based on a 2018 report by the state of California’s rating bureau, the average workers’ compensation rate was $2.25 per $100 of payroll. For example, a business with $200,000 in payroll would pay an annual premium of $4,500. This number depends on the relative risk of injury per industry and the business’s personal history of workers’ compensation claims.