A contractor employs 8 workers and has an annual payroll of $450,000. The workers' compensation insurance premium rate is 3.2% of payroll. What is the annual premium cost?
Correct Answer
A) $14,400
Annual premium = $450,000 × 0.032 = $14,400. All California contractors with employees must carry workers' compensation insurance.
Why This Is the Correct Answer
Annual premium = $450,000 × 0.032 = $14,400. All California contractors with employees must carry workers' compensation insurance.
More ca-license-law Questions
A Class C-10 electrical contractor has annual gross receipts of $3.2 million. What is the required bond amount under current California law?
Under B&P Code Section 7125.4, what is the fee for initial Home Improvement Salesperson registration?
According to B&P Code Section 7125, what is the maximum penalty the CSLB can impose for contracting without a license?
A home improvement contract for $8,500 requires a 3-day right to cancel notice. The contract is signed on Tuesday at 2 PM. When does the cancellation period expire?
A contractor employs 15 workers across multiple job sites. The total annual payroll is $850,000 with a workers' comp rate of 4.1%. If they self-insure with a deposit requirement of 125% of estimated annual premium, what deposit is required?
A C-10 electrical contractor wants to perform plumbing work valued at $8,000 as part of a larger electrical project. Is this permissible under CSLB regulations?
A homeowner discovers that an unlicensed contractor performed $25,000 worth of work on their property. Under B&P Code Section 7031, what remedy is available to the homeowner?
A Class B general building contractor wants to perform electrical work valued at $750. According to the B&P Code, this contractor:
A contractor's qualifying individual leaves the company. How many days does the contractor have to replace them before the license becomes invalid?
According to B&P Code Section 7031, what happens to a contractor's right to payment if they perform work while unlicensed?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
Which statement about workers' compensation requirements is correct under the Contractors State License Law?
Next Question
A contractor receives a citation with a $2,000 civil penalty for failing to obtain permits. The contractor wants to contest it. Within how many days must they request a hearing?
