A Palm Bay contractor estimates payroll of $390,000 for a class rated at 4.8%. What workers compensation premium estimate should be budgeted?
Correct Answer
C) $18,720.00
Workers compensation premium estimate equals payroll exposure multiplied by the rate.
Why This Is the Correct Answer
Workers compensation premium estimate equals payroll exposure multiplied by the rate.
Why the Other Options Are Wrong
Option A: $408,720.00
$408,720.00 is above the supported result for workers compensation premium estimate; it likely pays the wrong premium tier or counts the same hours twice.
Option B: $1,872,000.00
$1,872,000.00 is above the supported result for workers compensation premium estimate; it likely pays the wrong premium tier or counts the same hours twice.
Option D: $9,360.00
$9,360.00 is below the supported result for workers compensation premium estimate; it likely skips a premium-pay or employer-cost component.
Memory Technique
Who controlled compensation, who paid premium, where is the Manager Estimates record?
Reference Hint
Open-book path: tab Florida Statutes Chapter 440; Contractor's Manual, 2025 to Florida Statutes Chapter 440; Contractor's Manual, Workers compensation payroll classification and premium estimates; verify the HR, payroll, workers compensation, or OSHA record before answering.
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