Question

Apter 13

4. The base rate for workers' compensation insurance for roolers
in one state is $16.95 per $100 paid to employees. The total
monthly payroll for Certified Roofing is $15,738.00. What is the
monthly premium for workers' compensation insurance?

Answer 1

The roofers in that state must have an exceptionally high rate of accident, injury, or illness. Many places, the average rate of workers' comp insurance is less than $2 per $100.

Explanation:

Answer 2

$2,667.59

Explanation:

The insurance premium is found by multiplying the payroll amount by the premium rate.

($15,738) × $16.95/$100 = $15,738 × 0.1695 ≈ $2,667.59

The monthly workers' compensation insurance premium is $2,667.59.

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Additional comment

The roofers in that state must have an exceptionally high rate of accident, injury, or illness. Many places, the average rate of workers' comp insurance is less than $2 per $100.