The average employee of Girard Corporation earns gross pay of $175,000 per year. The following table shows the relative size of various payroll amounts by expressing each as a percentage of total wages and salaries expense (gross pay):
$\begin{array} { | l | l | }
\hline \text { Workers' compensation insurance } & 6 \% \
\hline \begin{array} { l }
\text { Social security and medical care taxes } \
\text { (employer's portion) }
\end{array} & 8 \% \
\hline \begin{array} { l }
\text { Pension and other postretirement costs } \
\text { expense (paid by employer) }
\end{array} & 5 \% \
\hline \text { Unemployment taxes expense } & 2 \% \
\hline
\end{array}$
In addition, Girard pays $825 per month per employee for group health insurance.
-Which of the following represents the second largest payroll related expense incurred by Girard?

Question

The average employee of Girard Corporation earns gross pay of $175,000 per year. The following table shows the relative size of various payroll amounts by expressing each as a percentage of total wages and salaries expense (gross pay):
$\begin{array} { | l | l | } 
\hline \text { Workers' compensation insurance } & 6 \% \
\hline \begin{array} { l } 
\text { Social security and medical care taxes } \
\text { (employer's portion) }
\end{array} & 8 \% \
\hline \begin{array} { l } 
\text { Pension and other postretirement costs } \
\text { expense (paid by employer) }
\end{array} & 5 \% \
\hline \text { Unemployment taxes expense } & 2 \% \
\hline
\end{array}$
In addition, Girard pays $825 per month per employee for group health insurance.
-Which of the following represents the second largest payroll related expense incurred by Girard?

Quizplus · Accepted Answer

The employer's share of social security taxes and medical care taxes is the second largest payroll related expense incurred by Girard.

The Average Employee of Girard Corporation Earns Gross Pay of $175,000