Question

A certain retail company is obligated to pay 2.17%on earned wages into Worker's Compensationinsurance.What is the Worker's Compensation payment on$40,000 of wages?Worker's Comp. payment = $ [?]Round to the nearest hundredth.

Answer 1

`\text{Percentage }=Base* Rate`

Given information:

Rate = 2.17/100 = 0.0217

Base = $40,000

`\begin{gathered} \text{Percentage }=Base* Rate \\ \text{Percentage }=40,000*0.0217 \\ \text{Percentage }=868 \end{gathered}`

Therefore, the Worker's Compensation Payment will be $868.00.