Payroll subject to workers compensation is $92,000 and the rate is $6.50 per $100 of payroll. What estimated premium results?
Correct Answer
D) $5,980.
Premium is $92,000 / $100 x $6.50 = $5,980.
Why This Is the Correct Answer
Premium is $92,000 / $100 x $6.50 = $5,980.
Why the Other Options Are Wrong
Option A: $598.
$598. is below the supported result for workers compensation premium; it likely skips a premium-pay or employer-cost component.
Option B: $6,500.
$6,500. is above the supported result for workers compensation premium; it likely pays the wrong premium tier or counts the same hours twice.
Option C: $9,200.
$9,200. is above the supported result for workers compensation premium; it likely pays the wrong premium tier or counts the same hours twice.
Memory Technique
Workers ladder for Estimating Cost: hours climb before dollars add up.
Reference Hint
Study anchor (closed-book): memorize Workers compensation premium from CSLB Law and Business Study Guide; California tax and payroll guidance / California Labor Code workers compensation; CSLB business finance guidance; know the rule or calculation trigger without relying on exam-room lookup.
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