Question

Willamette Manufacturing estimated that its total payroll for the coming year would be $650,000. The workers' compensation insurance premium rate is 0.3%. Calculate the estimated workers' compensation insurance premium.

Answer 1

the estimated workers' compensation insurance premium is $1,950

Step-by-step explanation:

The computation of the estimated workers' compensation insurance premium is shown below:

= Total payroll for the coming year × compensation insurance premium rate

= $650,000 × 0.3%

= $1,950

hence, the estimated workers' compensation insurance premium is $1,950

The above formula to be applied for determining the same