Question

Specialty Manufacturing estimated that its total payroll for the coming year would be $456,000. The workers' compensation insurance premium rate is 0.2%.Calculate the estimated workers' compensation insurance premium.

Answer 1

Specialty Manufacturing

The Estimated workers' compensation insurance premium is:

= $912.

Step-by-step explanation:

a) Data and Calculations:

Estimated total payroll for the coming year = $456,000

Workers' compensation insurance premium rate = 0.2%

Estimated workers' compensation insurance premium = $912 ($456,000 * 0.2%)

b) The Insurance Premium is the charge or expense that is paid to the insurance company for the insurance services provided. It is usually calculated as the insured value multiplied by the premium rate.