The last semimonthly payroll of Capital Construction was $77,763.00 of gross wages for 49 employees. The company pays 4.9% of payroll for vacations and sick leave and $62.19 per employee for health insurance. What percent of payroll is the total cost of fringe benefits? (Round your answer to the nearest tenth of a percent)

Question

Quizplus · Accepted Answer

The total cost of fringe benefits includes both the 4.9% of payroll for vacations and sick leave, and the health insurance cost per employee. First, calculate the cost of vacations and sick leave: 4.9% of $77,763.00 = 0.049 * 77,763 = $3,810.39. Then, calculate the total health insurance cost: 49 employees * $62.19/employee = $3,047.31. Add both to get the total fringe benefits cost: $3,810.39 + $3,047.31 = $6,857.70. To find the percent of payroll, divide the total fringe benefits cost by the total payroll and multiply by 100: ($6,857.70 / $77,763.00) * 100 = 8.8%.

The Last Semimonthly Payroll of Capital Construction Was $77,763