Workers' Comp Rates for Computer Programming or Software Development (Class Code 8859)
Last verified: 2026-05-20 · Reviewed against NCCI and state rating-bureau filings — how we verify
Description
Covers software developers, programmers, and IT professionals creating and maintaining software.
Common Businesses
Hazard Group
A
National Avg Rate
$0.19
per $100 payroll
Most Expensive States
- New York$0.26
- Alaska$0.26
- California$0.24
Rates by State for Class Code 8859
47 jurisdictions rate this code per $100 of payroll. North Dakota, Ohio, Washington and Wyoming are not included. Each is a monopolistic state fund that sets premium on its own basis rather than on an NCCI class-code rate per $100 of payroll, so there is no comparable figure to average or rank.
| State | Rate per $100 | vs. National Avg | Effective |
|---|---|---|---|
| Indiana | $0.14 | -0.05 | 2026-01-01 |
| Texas | $0.14 | -0.05 | 2026-07-01 |
| Utah | $0.15 | -0.04 | 2026-02-01 |
| Virginia | $0.15 | -0.04 | 2026-04-01 |
| Arkansas | $0.16 | -0.03 | 2026-07-01 |
| Colorado | $0.16 | -0.03 | 2026-01-01 |
| Tennessee | $0.16 | -0.03 | 2026-03-01 |
| Arizona | $0.17 | -0.02 | 2026-01-01 |
| Idaho | $0.17 | -0.02 | 2026-01-01 |
| Kansas | $0.17 | -0.02 | 2026-01-01 |
| Mississippi | $0.17 | -0.02 | 2026-03-01 |
| Nebraska | $0.17 | -0.02 | 2026-02-01 |
| North Carolina | $0.17 | -0.02 | 2026-04-01 |
| South Dakota | $0.17 | -0.02 | 2026-07-01 |
| Iowa | $0.18 | -0.01 | 2026-01-01 |
| Kentucky | $0.18 | -0.01 | 2026-01-01 |
| New Mexico | $0.18 | -0.01 | 2026-01-01 |
| South Carolina | $0.18 | -0.01 | 2026-04-01 |
| Alabama | $0.19 | +0.00 | 2026-03-01 |
| Georgia | $0.19 | +0.00 | 2026-03-01 |
| Maryland | $0.19 | +0.00 | 2026-01-01 |
| Minnesota | $0.19 | +0.00 | 2026-01-01 |
| Missouri | $0.19 | +0.00 | 2026-01-01 |
| Nevada | $0.19 | +0.00 | 2026-03-01 |
| New Hampshire | $0.19 | +0.00 | 2026-01-01 |
| Oregon | $0.19 | +0.00 | 2026-01-01 |
| West Virginia | $0.19 | +0.00 | 2026-01-01 |
| Delaware | $0.20 | +0.01 | 2025-12-01 |
| Maine | $0.20 | +0.01 | 2025-04-01 |
| Michigan | $0.20 | +0.01 | 2026-01-01 |
| Vermont | $0.20 | +0.01 | 2026-04-01 |
| Wisconsin | $0.20 | +0.01 | 2025-10-01 |
| District of Columbia | $0.21 | +0.02 | 2026-01-01 |
| Florida | $0.21 | +0.02 | 2026-01-01 |
| Massachusetts | $0.21 | +0.02 | 2024-07-01 |
| Montana | $0.21 | +0.02 | 2026-07-01 |
| Oklahoma | $0.21 | +0.02 | 2026-01-01 |
| Rhode Island | $0.21 | +0.02 | 2026-08-01 |
| Connecticut | $0.22 | +0.03 | 2026-01-01 |
| Illinois | $0.22 | +0.03 | 2026-01-01 |
| Louisiana | $0.22 | +0.03 | 2026-05-01 |
| Hawaii | $0.23 | +0.04 | 2026-01-01 |
| New Jersey | $0.23 | +0.04 | 2026-01-01 |
| Pennsylvania | $0.23 | +0.04 | 2026-04-01 |
| California | $0.24 | +0.05 | 2025-09-01 |
| Alaska | $0.26 | +0.07 | 2026-01-01 |
| New York | $0.26 | +0.07 | 2025-10-01 |
How Class Code 8859 Rates Are Spread Across the States
Across 47 states, the estimated workers' comp rate for NCCI class code 8859 (Computer Programming or Software Development) ranges from $0.14 to $0.26 per $100 of payroll, with a national average of $0.19 and a median of $0.19. Each bar counts the states whose estimated rate falls in that range — shaded cheaper (green) to pricier (red). The dashed line marks the national average.
Distribution across 47 states. Rates are a modeled benchmark (NCCI base-rate catalogue × state rate multiplier, catalogue retrieved 2026-05-20) and are not reconciled to filed state loss costs — see the calibration measurement and our rate disclaimer.
View the rate distribution as a data table
| Rate range / $100 | States | Which states |
|---|---|---|
| $0.14–$0.16 | 4 | Indiana, Texas, Utah, Virginia |
| $0.16–$0.17 | 3 | Arkansas, Colorado, Tennessee |
| $0.17–$0.18 | 11 | Arizona, Idaho, Kansas, Mississippi, Nebraska, North Carolina, South Dakota, Iowa, Kentucky, New Mexico, South Carolina |
| $0.18–$0.20 | 9 | Alabama, Georgia, Maryland, Minnesota, Missouri, Nevada, New Hampshire, Oregon, West Virginia |
| $0.20–$0.22 | 11 | Delaware, Maine, Michigan, Vermont, Wisconsin, District of Columbia, Florida, Massachusetts, Montana, Oklahoma, Rhode Island |
| $0.22–$0.23 | 3 | Connecticut, Illinois, Louisiana |
| $0.23–$0.24 | 4 | Hawaii, New Jersey, Pennsylvania, California |
| $0.24–$0.26 | 2 | Alaska, New York |
| Summary | 47 | Min $0.14 · Median $0.19 · Avg $0.19 · Max $0.26 |
The rates above are manual rates — step 1 of the eight-step rating-bureau premium algorithm. See what your carrier applies after that, or estimate premium for code 8859 with your own payroll and experience mod.
About Class Code 8859: Scope, Inclusions, and Common Misclassifications
Class Code 8859 - "Computer Programming or Software Development" - applies to employers whose business is developing, customizing, testing, debugging, updating, or maintaining software for other organizations, or developing standard software products for use by other organizations. The scope is broader than heads-down coding: public bureau guidance includes web-based applications and websites, troubleshooting, compatibility updates, and standard software packages intended for use across multiple industries.
The most important audit question is whether the employer sells or contracts software-development work as its business, or whether the programming staff only supports another business operation. A SaaS studio, app-development contractor, web-application agency, or software vendor can fit 8859. A manufacturer writing firmware for its own device, a retailer maintaining internal inventory software, or a hospital employing internal IT developers can fall outside 8859 and should be reviewed under the governing operation or a state-specific companion classification.
What's Included Under Class Code 8859
NYCIRB's public 8859 description covers employers engaged in developing or customizing computer programs or software for other concerns on a contract basis, plus the development of standard generic programs for other concerns. Covered operations include designing, coding, testing, debugging, troubleshooting, updates, compatibility work, compliance updates, and standard packages for broad industry use.
Common 8859 businesses include custom software development firms, SaaS product companies, mobile-app studios, web-application developers, software implementation contractors, and agencies that build or manage internet and web-based applications for clients. The page's state-rate table estimates the filing-based base rate for that software-development exposure; final premium still depends on payroll, carrier loss-cost multiplier, experience modification, state rules, and whether the audit splits any hardware, field service, sales, or clerical operation differently.
Several independent-bureau states use their own phraseology and effective dates. New York, for example, established 8859 effective October 1, 2025 as part of its classification-code 8810 study, moving software and technology companies out of 8810 and into 8859. California uses 8859(1) for computer programming or software development and has separate California rules around maximum payroll limitations and internet or web-based application classifications.
When 8859 Is the Wrong Software Code
Internal software support is the first boundary. Public bureau guidance says 8859 does not apply when programming or software development supports the employer's own operations, including programs integrated into a hardware product sold by that employer. A payroll platform company building software for customers is different from a warehouse company whose employee writes internal dispatch scripts.
Hardware integration is the second boundary. If developers are writing software that is integrated into a manufactured product, the correct assignment can move to an appropriate manufacturing or electronics classification rather than 8859. That distinction matters for embedded devices, industrial controls, diagnostic equipment, computer peripherals, and other products where software is part of a physical product sold by the employer.
Field work and mixed consulting can also change the classification. A software consultant who only designs, codes, tests, and supports applications generally fits the low-hazard software-development exposure. A consultant who installs hardware, pulls cable, installs or repairs office machines and computer hardware (a separate field-service code, 5191), runs a data center, performs managed IT at customer premises, or supervises non-clerical field technicians may need separate payroll records and a different governing code for that work.
8859 vs 8810 and 8871
Class Code 8859 is not just 8810 clerical office work with a software title. Clerical 8810 is for office employees doing clerical duties such as records, correspondence, data entry, and telephone work in a physically separated office. Software development has its own product-development exposure, even when it is performed at a desk.
Remote software developers are not automatically 8871 clerical telecommuter employees. Code 8871 is a Standard Exception for eligible clerical work performed from home. If the employee's actual job is programming, QA engineering, software architecture, DevOps, or application support for software sold to clients, the remote work location does not convert that payroll into a clerical telecommuter classification.
Outside sales can also be included differently by state phraseology. New York's 8859 phraseology includes clerical and outside salespersons, and California's 8859(1) phraseology includes clerical office, clerical telecommuter, and outside salespersons. In states where the basic classification includes those roles, do not automatically split them to 8742 outside sales without checking the local manual.
Sources
- NYCIRB Classification Digest - Class 8859 Phraseology and Description (retrieved 2026-05-20)
- NYCIRB Classification Digest - Class 8859 Dashboard and Rating Values (retrieved 2026-05-20)
- NYCIRB R.C. 2624 - Classification Code 8810 Study: Phase 3 (retrieved 2026-05-20)
- WCIRB California - Computer Programming or Software Development, Classification 8859(1) (retrieved 2026-05-20)
Frequently Asked Questions
- What is workers' comp class code 8859?
- Workers' comp class code 8859 is the computer programming or software development classification. It generally applies to employers that develop, customize, test, debug, update, or maintain software for other organizations, or that develop standard software products for use by other organizations. It can include web-based applications, SaaS products, app studios, and contract software-development firms when the software work is the employer's business.
- How much is workers' comp insurance for class code 8859?
- The national average rate for class code 8859 is $0.19 per $100 of payroll, across the 47 jurisdictions rated on that basis. Cheapest states: Indiana ($0.14), Texas ($0.14), Utah ($0.15). Most expensive: New York ($0.26), Alaska ($0.26), California ($0.24). Actual premium depends on your state, payroll, experience modifier, and carrier. North Dakota, Ohio, Washington and Wyoming are not included. Each is a monopolistic state fund that sets premium on its own basis rather than on an NCCI class-code rate per $100 of payroll, so there is no comparable figure to average or rank.
- What businesses use workers' comp class code 8859?
- Class code 8859 typically applies to Software companies, SaaS firms, App development studios, IT consulting firms, Game development studios.
- Does class code 8859 apply to SaaS and web app companies?
- Usually yes, when the employer's business is building or operating software products or web-based applications for customers or other organizations. Public bureau guidance for 8859 includes the development and management of internet or web-based applications and websites for other organizations on a contractual basis. State manuals can vary, so California, New York, and other independent-bureau states should be checked before binding a quote.
- Is internal IT or in-house software development class code 8859?
- Not automatically. A business whose main operation is something else, such as manufacturing, retail, warehousing, healthcare, or construction, may have programmers who support internal operations. Public 8859 guidance excludes software development performed to support the employer's own operations, including programs integrated into a hardware product sold by the employer. Those employees may belong under the governing operation, a manufacturing/electronics classification, or another state-specific code.
- How is 8859 different from 8810 clerical or 8871 telecommuter clerical?
- Class code 8810 covers eligible clerical office employees; 8871 covers eligible clerical telecommuters. Class code 8859 covers software-development work. A remote programmer, QA engineer, application developer, or DevOps employee is not clerical just because the work is done on a computer or from home. If the job is building or supporting software that the employer sells or develops for clients, review 8859 before using 8810 or 8871.
- What is the workers' comp rate for class code 8859?
- The workers' comp rate for class code 8859 varies by state and carrier. Software development is usually a low-hazard desk-based exposure, but final premium still depends on state loss costs, carrier loss-cost multipliers, payroll, experience modification, schedule rating, minimum premium, and whether any hardware, field service, data-center, sales, or clerical payroll is split differently. The rate table on this page shows filing-based base-rate estimates, not quotes.
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