Question

Small Orange Fine Foods is a specialty grocery store. The employees are classified according to job titles for workers' compensation insurance premium computation purposes. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Required a. Based on the payroll estimates as of January 1, what is the total estimated workers' compensation premium for 20xx? b. The actual payroll for 20XX is listed below. What is the workers' compensation premium based on the actual payroll? c What is the difference between the actual and the estimated premiums? of Payroll for 20xX 075 $ 1.90 $ 192,500 212,160 t StockerS Stock Handler240S 237120 Total Premium 0.00 Ellolinieanon late pay ocoemsmon sificationof Payroll 20xX 075 $ 1.90 S 240 $ 196 583 Shelf Stocker Stock Handler 242 574 0.00 en actual and estimated premiums

Answer 1

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Solution: a) EmployeeRate per $100 Estimated Workers' Classifications lof Pavroll Grocery Clerk Shelf Stocker Stock Handler Total Premium Pavroll Comp. Prem 0.75 192500 1.9 212160 2.4 237120 1443.75 (192500/100)*0.75 4031.04 (212160/100) *1.9 5690.88 (237120/100)*2.4 S 11,165.67 b) EmployeeRate per $100 Actual Workers' Classifications lof Pavroll Grocery Clerk Shelf Stocker Stock Handler Total Premium Payroll Comp. Prem 0.75 196588 1.9 215220 242574 1474.41 (196588/100)*0.75 4089.18 (215220/100)*1.9 5821.776 (242574/100) *2.4 2.4 S 11,385.37 c) Difference between actual and estimate219.70 (11385.37-11165.67)