A Leesburg labor code posts $58,900 of payroll. The workers' compensation manual rate is $7.25 per $100 of payroll. What premium should be accrued?
Correct Answer
A) $4,270.25
Workers' compensation premium is payroll divided by 100, multiplied by the manual rate.
Why This Is the Correct Answer
Workers' compensation premium is payroll divided by 100, multiplied by the manual rate.
Why the Other Options Are Wrong
Option B: $427.02
$427.02 is below the supported result for workers' compensation accrual; it likely skips a premium-pay or employer-cost component.
Option C: $42,702.50
$42,702.50 is above the supported result for workers' compensation accrual; it likely pays the wrong premium tier or counts the same hours twice.
Option D: $58,907.25
$58,907.25 is above the supported result for workers' compensation accrual; it likely pays the wrong premium tier or counts the same hours twice.
Memory Technique
Workers' ladder for Payroll Clerk: hours climb before dollars add up.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section Two, Payroll Records, Workers' Compensation; use the job ledger figures in the stem and recompute the same accounting measure.
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