A workers' compensation estimate uses $180,000 payroll and a supplied 4.8 percent rate. What premium is estimated?
Correct Answer
B) $8,640.
Premium estimate is $180,000 x 4.8 percent = $8,640.
Why This Is the Correct Answer
Premium estimate is $180,000 x 4.8 percent = $8,640.
Why the Other Options Are Wrong
Option A: $8,160.
$8,160. is below the supported result for workers compensation cost calculation; it likely skips a premium-pay or employer-cost component.
Option C: $9,200.
$9,200. is above the supported result for workers compensation cost calculation; it likely pays the wrong premium tier or counts the same hours twice.
Option D: $4,320.
$4,320. is below the supported result for workers compensation cost calculation; it likely skips a premium-pay or employer-cost component.
Memory Technique
Workers ladder for Budgeting Supplied: hours climb before dollars add up.
Reference Hint
Study anchor (closed-book): memorize Workers compensation cost calculation from CSLB Law and Business Study Guide; California Employment Development. / California Labor Code workers compensation cost concepts; know the rule or calculation trigger without relying on exam-room lookup.
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