What encompasses an employer's total payroll costs?

The correct answer is B, as it encompasses the full scope of an employer's total payroll costs. Total payroll costs include not just the wages or salaries paid to employees, but also other significant expenses associated with employment, such as benefits (health insurance, retirement contributions, etc.) and additional compensation costs (overtime, bonuses). This comprehensive view is crucial for accurately calculating workers' compensation premiums, as these costs directly impact the financial liability of the employer in relation to their workforce.

Understanding total payroll costs is important in the context of workers' compensation because it helps ensure that all components of employee remuneration are taken into account, leading to fair and accurate premium assessments. Employers need to be aware of all financial obligations related to their employees to manage costs effectively and remain compliant with workers' compensation regulations.

In contrast, the other options are more limited in scope. For instance, only considering employee wages does not capture the complete financial commitment an employer has towards their workforce. Similarly, commissions paid to sales employees may represent a portion of compensation but do not include benefits or other indirect costs associated with employment. Lastly, expenses related to workplace safety measures, while important for operational costs and compliance, do not fall under the definition of payroll costs as they do not pertain directly to