Calculate the total workers compensation premium for a Virginia contractor with the following: Carpentry work $150,000 payroll at $6.25 per $100, and concrete work $75,000 payroll at $4.50 per $100:
Correct Answer
B) $13,125
Carpentry: ($150,000 ÷ $100) × $6.25 = $9,375. Concrete: ($75,000 ÷ $100) × $4.50 = $3,375. Total: $9,375 + $3,375 = $12,750
Why This Is the Correct Answer
$13,125 is marked as the correct answer (option B). Note: The standard calculation yields Carpentry: ($150,000 ÷ $100) × $6.25 = $9,375, and Concrete: ($75,000 ÷ $100) × $4.50 = $3,375, totaling $12,750. The discrepancy between the marked correct answer ($13,125) and the arithmetic result ($12,750) suggests a possible source data error. However, per the question's designated answer, $13,125 is treated as correct here.
Why the Other Options Are Wrong
Option A: $12,750
$12,750 is the result of the standard arithmetic calculation (Carpentry $9,375 + Concrete $3,375). While mathematically correct based on the given rates, this option is not designated as the correct answer in this question's source data.
Option C: $15,000
$15,000 is higher than both the arithmetic result and the designated answer. It may result from applying a flat or incorrect rate across the total payroll without differentiating by trade classification.
Option D: $9,375
$9,375 represents only the carpentry portion of the premium, omitting the concrete trade payroll entirely. This partial calculation error would significantly understate the total coverage cost.
Memory Technique
Workers' comp premium formula: (Payroll ÷ 100) × Rate. Do each trade separately, then add them up. Think of it as paying per $100 'unit' of payroll — count your units, then multiply by the price per unit for each job type.
More Virginia Questions
Under Virginia law (Title 54.1), what is the minimum net worth requirement for a Class A contractor license?
A Virginia contractor fails to pay a subcontractor $18,500 for completed work. Under Virginia mechanics lien law, within how many days must the subcontractor file a memorandum of lien to preserve their lien rights?
A Virginia contractor employs 8 workers with a total annual payroll of $420,000. Using the standard construction rate of $8.50 per $100 of payroll, what is the annual workers' compensation premium?
A Virginia contractor fails to pay subcontractors on a $180,000 project. Under Virginia mechanics lien law, what is the maximum time period a subcontractor has to file a mechanics lien after last furnishing labor or materials?
Under Virginia contractor law, what happens to a contractor's license if they fail to maintain required insurance coverage?
A contractor fails to pay a subcontractor and the subcontractor files a mechanics lien. Under Virginia law, within how many days must the general contractor post a bond to release the lien from the property?
A Class B contractor in Virginia completed $850,000 worth of work in the current license period and has contracts totaling $1,200,000 for the next period. What action must the contractor take?
A homeowner hired an unlicensed contractor for a $45,000 kitchen renovation. Under Virginia law, what remedy is available to the homeowner?
Calculate the required bond amount for a Virginia Class A contractor with average annual gross receipts of $2,800,000 over the past three years.
A Class C contractor in Virginia wants to install a residential HVAC system valued at $12,000. The contractor's specialty classification is electrical work. What must the contractor do to legally perform this work?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A Virginia contractor fails to pay a subcontractor $18,500 for completed work. Under Virginia mechanics lien law, within how many days must the subcontractor file a memorandum of lien to preserve their lien rights?
Next Question
A Virginia contractor installs a 200-amp electrical panel. The USBC requires a working space of 30 inches wide and 36 inches deep in front of the panel. If the panel is 20 inches wide, what is the minimum room width required?