A contractor employs 15 workers and pays $680,000 in annual wages. If the workers' compensation rate is $3.75 per $100 of payroll, and there's a 15% experience modification factor increase, what is the total annual premium?
Correct Answer
D) $29,325
Base premium: ($680,000 ÷ $100) × $3.75 = $25,500. With 15% increase: $25,500 × 1.15 = $29,325
Why This Is the Correct Answer
Base premium: ($680,000 ÷ $100) × $3.75 = $25,500. With 15% increase: $25,500 × 1.15 = $29,325
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