Florida Contractor Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Florida Contractor Exam with practice tests featuring multiple choice questions and answers. Enhance your knowledge to succeed in various categories of contractor licensing in Florida.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What penalty may an employer face for understating payroll to the Workers Compensation carrier?

10% plus the additional premium
15% plus the additional premium
20% plus the additional premium
1.5 times the amount that should have been paid

The correct answer is: 20% plus the additional premium

An employer who understates payroll to the Workers Compensation carrier may face a penalty of 20% plus the additional premium. This penalty serves a dual purpose; it acts as a deterrent against fraudulent reporting while also recovering the funds that the insurance carrier is owed based on an accurate payroll assessment. The 20% penalty reflects the seriousness of payroll misrepresentation, as it can significantly impact the financial stability of the insurance system. This approach ensures that both the employer is held accountable for accurate reporting and the integrity of the Workers Compensation system is maintained. Understanding these financial implications is crucial for employers to promote compliance with regulations and avoid the serious repercussions associated with grossly inaccurate payroll reporting.