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A contractor with 8 employees needs to calculate their workers' compensation insurance premium. If the base rate is $4.50 per $100 of payroll and the total annual payroll is $480,000, what is the annual premium?

Correct Answer

C) $21,600

($480,000 ÷ $100) × $4.50 = 4,800 × $4.50 = $21,600

Answer Options
A
$22,400
B
$20,800
C
$21,600
D
$19,600

Why This Is the Correct Answer

($480,000 ÷ $100) × $4.50 = 4,800 × $4.50 = $21,600

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