EstatePass
ca-license-lawCSLB Licensing Requirementseasy

A contractor has 12 employees with a monthly payroll of $48,000. If workers' compensation insurance costs 2.5% of payroll, what is the monthly insurance cost?

Correct Answer

C) $1,200

Monthly insurance cost = $48,000 × 0.025 = $1,200. Workers' compensation is mandatory for contractors with employees.

Answer Options
A
$1,500
B
$2,000
C
$1,200
D
$1,000

Why This Is the Correct Answer

Monthly insurance cost = $48,000 × 0.025 = $1,200. Workers' compensation is mandatory for contractors with employees.

Was this explanation helpful?

More ca-license-law Questions

People Also Study

Related Study Resources

Practice More Contractor Exam Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your Florida General Contractor exam.

Start Practicing

Disclaimer: EstatePass is an independent exam preparation platform and is not affiliated with, endorsed by, or connected to any state contractor licensing board, the Construction Industry Licensing Board (CILB), the Department of Business and Professional Regulation (DBPR), NASCLA, Pearson VUE, PSI, or any government agency. Exam requirements, fees, and regulations change frequently. Always verify current requirements with your state's licensing board before making decisions. Information shown was last verified on the dates indicated and may not reflect the most recent changes.