Question

A contractor pays a workers' comp assessment rate of $.10 per $100 of office employees' payroll, $2.00 per $100 of field supervisors' payroll, and $.36 per $100 of field employees' payroll. Total office employee payroll for the year is $35,000. Total field supervisor payroll for the year is $58,000. Total field employee payroll is $325,000. The contractor receives a discount of 5% of total premiums for having a safety program in place. The total workers' compensation for the year is?

a) $9,123
b) $10,050
c) $11,225
d) $12,350

Answer 1

After calculating the total workers' compensation premiums for the different categories of employees and applying the 5% discount, the result does not match any of the provided answer choices. It's recommended to verify the details of the question, as there might be a mistake.

Step-by-step explanation:

To calculate the total workers' compensation for the year, we begin by finding out the premium for each category of employees before any discounts. For office employees, field supervisors, and field employees, we multiply their respective total payrolls by the workers' comp assessment rates (per $100 of payroll) provided.

• Office employee premium: ($35,000 / $100) * $0.10 = $35
• Field supervisor premium: ($58,000 / $100) * $2.00 = $1,160
• Field employee premium: ($325,000 / $100) * $0.36 = $1,170

Add these up to get the total premium without discounts: $35 + $1,160 + $1,170 = $2,365

Now, applying the 5% discount for the safety program: $2,365 * 0.05 = $118.25 discount

Deducting the discount from the total premium gives us: $2,365 - $118.25 = $2,246.75

However, none of the provided answers match this calculation. It appears there may be a misunderstanding or an error in the question. If this is a classroom or homework question, it would be wise to double-check the figures and the available answer choices with the teacher.