East Coast DVD employs 54 workers with a gross biweekly payroll of $94,126. Fringe benefits are $10.18 per employee for life insurance and 12.3% of payroll for a stock purchase plan. What is the total cost of fringe benefits?

Question

Quizplus · Accepted Answer

The total cost of fringe benefits includes both the life insurance and the stock purchase plan. Life insurance costs $10.18 per employee, so for 54 employees, it's 54 * $10.18 = $549.72. The stock purchase plan is 12.3% of the payroll, which is 0.123 * $94,126 = $11,577.50. Adding these together gives $549.72 + $11,577.50 = $12,127.22.

East Coast DVD Employs 54 Workers with a Gross Biweekly