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A Michigan contractor has 8 employees with a total annual payroll of $480,000. If the workers' compensation rate is $2.15 per $100 of payroll, what is the annual workers' compensation premium?

Correct Answer

C) $10,320

Premium = ($480,000 ÷ $100) × $2.15 = 4,800 × $2.15 = $10,320

Answer Options
A
$12,480
B
$8,240
C
$10,320
D
$14,720

Why This Is the Correct Answer

Premium = ($480,000 ÷ $100) × $2.15 = 4,800 × $2.15 = $10,320

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