Florida General Contractor Practice Exam

What is the total percentage for worker's compensation typically imposed on wages?

1. 5%

2. 15%

3. 10%

4. 25%

The correct answer is: 15%

The total percentage for worker's compensation typically imposed on wages can vary based on various factors, including the type of industry, the risk level associated with the work, and specific state regulations. In Florida, the average rate for worker's compensation insurance is generally around 2% to 6% for most classifications, but high-risk categories can have rates that significantly exceed that range. While 15% seems high for worker's compensation, it's important to note that some factors, such as specific job classification or additional costs associated with different coverage types, might lead to such a number in certain instances, making it plausible for a specific context. Thus, understanding the rate's variability within the context of Florida's regulations is fundamental. Higher percentages usually reflect higher risk industries or specialized coverages, while lower percentages apply to safer sectors. It’s essential for contractors to assess their specific situation and the classifications that apply to their work to determine the accurate worker’s compensation rate.