For this exercise, please assume a province that has three rates for worker’s compensation: General Office Workers, $1.75 per $100; Sales Staff, $2.55 per $100; Management Personnel, $1.20 per $100.
In the above province, DSK Enterprises operates a business that has workers in each of these categories. The company has projected the following salary expense for each category of employee for the 2014 calendar year:
General Office Worker………………………… $254,000
Sales Staff…………………………................... $347,000
Management Personnel………………………... $418,000
Required
a. Calculate the WCB premium that DSK would submit to its provincial WCB for the 2014 year.
b. Given that actual salary expenses turned out to be as shown below, calculate the refund or added premium that the company receives from, or has to send to, its WCB early in January 2015.
General Office Worker………………………… $249,800
Sales Staff……………………………………... $354,600
Management Personnel………………………… $416,000