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ca-license-lawCSLB Licensing Requirementshard

A contractor employs 15 workers and reports quarterly payroll of $180,000. If exempt employees earn $45,000 of this total, what is the workers' compensation premium at a 2.8% rate?

Correct Answer

D) $3,780

Workers' comp premium applies only to non-exempt payroll: ($180,000 - $45,000) × 0.028 = $135,000 × 0.028 = $3,780.

Answer Options
A
$5,040
B
$4,200
C
$3,500
D
$3,780

Why This Is the Correct Answer

Workers' comp premium applies only to non-exempt payroll: ($180,000 - $45,000) × 0.028 = $135,000 × 0.028 = $3,780.

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