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Contractors should make providing a safe work environment a high priority, but there are other advantages when contractors promote safe work practices. These advantages come

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Contractors should make providing a safe work environment a high priority, but there are other advantages when contractors promote safe work practices. These advantages come in the form of lower overhead costs which increases profits. In this homework assignment, there are two scenarios where you must calculate the amount each contractor will be paying for workers' compensation for one (1) month's payroll. Please show all calculations for scenarios #1 and #2, then answer question #3. Answer all questions legibly as unclear answers will have points deducted. If an excel spreadsheet is used, please include a copy of the formula sheet along with your answer sheet. Please staple your answer sheet(s) to this homework page. This assignment will be due Tuesday, February 9, 2016. The workers' compensation costs for each employee group are determined by the National Council on Compensation Insurance (NCCI) by state. Each task or job is given a class code and rate which is universal for all contractors within the states jurisdiction. The following job and rates are a very close representation of premiums an Arizona framing contractor would expect to pay per classification or job task and are listed as follows: Framing employees $17.35, Salesperson $.0.78, and Bookkeeper $0.22. The NCCI also assigns each contractor their individual Experience Modification Rate (EMR) based on past injury expenditures. Given the following information, calculate company Workers' Compensation Costs for each: ABC Framing has 25 framing employees earning an average hourly wage of $22.50 and each framer is working a total of 165 hours for the month. ABC Framing has one (1) salesperson who makes a base salary per month of $4,000 dollars, and one (1) bookkeeper who earns a wage of $12.00 per hour, working a total of 176 hours for the month. The EMR assigned to ABC Framing by NCCI is 1.15. XYZ Framing has 30 framing employees earning an average hourly wage of $23.00, and each framer is working a total of 176 hours for the month. XYZ Framing has two (2) salespersons who make a base salary per month of $3,000 dollars, and one (1) bookkeeper who earns a wage of $16.00 per hour, working a total of 176 hours for the month. The EMR assigned to XYZ Framing by NCCI is 0.65. Based on your analysis for monthly Workers' Compensation costs in $$, which contractor in problems #1 & #2 would have a better culture

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