A Michigan contractor's workers' compensation policy has a $2,500 deductible. An employee injury results in $8,000 in medical costs. How much will the contractor pay out of pocket?
Correct Answer
B) $2,500
The contractor pays the deductible amount of $2,500. The workers' compensation insurance covers the remaining $5,500 in medical costs.
Why This Is the Correct Answer
The contractor pays the deductible amount of $2,500. The workers' compensation insurance covers the remaining $5,500 in medical costs.
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A Michigan contractor's license expires on June 30th. The contractor submits a renewal application on July 15th with all required documentation and fees. What is the status of the contractor's license?
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A contractor hires 3 part-time employees working 20 hours/week at $18/hour. What is the quarterly payroll for workers' compensation calculation?