Question

How much would this employer's workers comp insurance premium be? They have 15 clerical workers who earn $35,000 annually each. The clerical class code price is 0.20.

a) $7,500
b) $15,000
c) $10,500
d) $3,500

Answer 1

The employer's workers comp insurance premium would be $105,000.

Step-by-step explanation:

The employer's workers comp insurance premium can be calculated by multiplying the number of clerical workers by their annual salary and then multiplying by the class code price. In this case, the employer has 15 clerical workers, each earning $35,000 annually, and the class code price is 0.20.

So, the premium would be calculated as follows: 15 workers * $35,000 * 0.20 = $105,000

Therefore, the correct answer is b) $105,000.