Question

Math A business located in Missouri has a total payroll of

$8,563,928. If they are required to pay worker's compensation on
the first 8 percent of their payroll costs, what would be the mini-
mum and maximum amount they would have to contribute based
on the information in the lesson?

Answer 1

The business in Missouri must pay worker's compensation insurance on the first 8% of their payroll costs, which amounts to $8,563,928. The worker's compensation contribution that they must make is $684,714.24.

Step-by-step explanation:

The business in Missouri is required to pay worker's compensation insurance on the first 8% of their total payroll costs. The total payroll of the business is $8,563,928. To calculate the worker's compensation they need to pay, we apply the 8% rate to the total payroll:

Worker's Compensation = Total Payroll x Compensation Rate
Worker's Compensation = $8,563,928 x 0.08

After performing the calculation:

Worker's Compensation = $684,714.24

This amount represents the total worker's compensation contribution that the business will have to make. Since the question asks for the minimum and maximum based on the given percentage, and no additional variables are introduced, the minimum and the maximum are the same in this case, which is $684,714.24.