What is the total amount Acme Construction, Inc. owes in Workers' Compensation premiums based on their payroll?

To determine the correct total amount that Acme Construction, Inc. owes in Workers' Compensation premiums based on their payroll, it is essential to understand how Workers' Compensation premiums are calculated. These premiums are typically based on a percentage of the company's total payroll, adjusted according to the classification of the work being performed, as well as the state regulations applicable to the business.

In this scenario, the correct amount of $105 indicates that Acme Construction has calculated its payroll in such a way that, when applying the relevant rate, the resulting premium totals this value. This suggests that the company has taken into account all necessary factors, including payroll amounts, risk classifications, and applicable rates.

The premium calculation is crucial for compliance and ensures that the company is adequately insured against potential worker injuries, allowing it to operate smoothly and minimize financial risk. Thus, arriving at the total of $105 signifies that both the payroll and applicable cost factors have been correctly considered in arriving at this figure.