A contractor's employee earning $52,000 annually is injured on the job in Michigan. If the workers' compensation rate is 3.2% of payroll, what is the annual premium for this employee?
Correct Answer
A) $1,664
Annual premium = $52,000 × 0.032 = $1,664. Workers' compensation premiums are calculated as a percentage of payroll.
Why This Is the Correct Answer
Annual premium = $52,000 × 0.032 = $1,664. Workers' compensation premiums are calculated as a percentage of payroll.
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