Who pays workers' compensation premiums?

• A. Employee
• B. Federal government
• C. Private insurer
• D. Employer

Answer: (D)

Workers' compensation premiums are paid by the employer to obtain coverage for employees who are injured on the job. The premium goes to a workers' compensation insurer or state fund, or the employer may self-insure. Employees do not pay these premiums. In the federal context, the government may cover costs for federal employees, but for typical private-sector employment, the obligation rests with the employer. Therefore, the entity responsible for paying workers' compensation premiums is the employer.