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A contractor has 8 employees with a total quarterly payroll of $240,000. If the workers' compensation rate is 3.2% for their classification, what is the quarterly premium?

Correct Answer

C) $7,680

Quarterly premium = $240,000 × 0.032 = $7,680. Workers' compensation premiums are calculated based on payroll and classification rates.

Answer Options
A
$6,400
B
$7,200
C
$7,680
D
$8,000

Why This Is the Correct Answer

Quarterly premium = $240,000 × 0.032 = $7,680. Workers' compensation premiums are calculated based on payroll and classification rates.

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