The last semimonthly payroll of Garcia Carpentry was $84,248 of gross wages for 38 employees. The company pays 5.2% of payroll for vacations and sick leave and $72.22 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 cost of vacations and sick leave, and the cost of health insurance. The cost for vacations and sick leave is 5.2% of $84,248, which is $4,380.90. The cost for health insurance is $72.22 per employee for 38 employees, which totals $2,744.36. The total cost of fringe benefits is $4,380.90 + $2,744.36 = $7,125.26. To find the percent of payroll, divide the total cost of fringe benefits by the total payroll and multiply by 100: ($7,125.26 / $84,248) * 100 = 8.46%, which rounds to 8.5%.

The Last Semimonthly Payroll of Garcia Carpentry Was $84,248 of Gross