The last weekly payroll of Available Temp Services was $33,110.00 for 55 employees. The company pays 7.1% of payroll for vacations and sick leave and $58.06 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)

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Quizplus · Accepted Answer

The total cost of fringe benefits includes both the cost of vacations and sick leave, and the cost of health insurance. First, calculate the cost of vacations and sick leave: 7.1% of $33,110 = 0.071 * 33,110 = $2,350.81. Next, calculate the total cost of health insurance for all employees: $58.06 per employee * 55 employees = $3,193.30. Add both to get the total cost of fringe benefits: $2,350.81 + $3,193.30 = $5,544.11. To find the percent of payroll, divide the total cost of fringe benefits by the total payroll and multiply by 100: ($5,544.11 / $33,110) * 100 ≈ 16.7%.

The Last Weekly Payroll of Available Temp Services Was $33,110