PA Workers Comp Calculator
Glossary · PA Workers' Comp
Expense Constant
A flat $350 fee added to every Pennsylvania workers' comp policy to cover minimum administrative costs, regardless of premium size.
Definition
The expense constant is a flat $350 fee that is added to every workers' compensation policy in Pennsylvania, regardless of the size of the premium. It covers minimum administrative and policy issuance costs that are incurred for any policy regardless of payroll.
What the Expense Constant Is, Why It Exists, and How It Affects Small Employers
The $350 expense constant is set by the PCRB and applies to all policies. It is the same whether your premium is $500 or $500,000.
For very small employers, the expense constant can represent a significant portion of the total premium. A clerical-only business with $50,000 payroll might have a manual premium of only a few hundred dollars — but the expense constant adds $350 before the Act 57 assessment is applied.
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