Question

Jane Austen is the owner of Shakespeare's Sandwich Shop. The base rate for the state's workers' compensation insurance is $2.70 per $100 paid in wages. The monthly payroll is $11,450. What is the monthly premium for workers' compensation?

Answer 1

The monthly premium for workers' compensation insurance at Shakespeare's Sandwich Shop is $309.15, calculated by dividing the monthly payroll by 100 and then multiplying by the base rate of $2.70.

Step-by-step explanation:

Jane Austen needs to calculate the monthly premium for her sandwich shop's workman's compensation insurance. To find this, she should use the given base rate of $2.70 per $100 of wages paid. Since her monthly payroll is $11,450, the calculation would be:

Premium = (Payroll / 100) * Rate

Premium = ($11,450 / 100) * $2.70
Premium = 114.5 * $2.70
Premium = $309.15

Therefore, the monthly premium for worker's compensation at Shakespeare's Sandwich Shop is $309.15.