An employer's total payroll-related costs always exceed the wages and salaries earned by employees by:
A)Amounts withheld from employees' pay.
B)Payroll taxes and mandated programs such as workers' compensation insurance.
C)50%.
D)Employers' payroll-related costs actually are less than the gross wages and salaries earned by employees,because of amounts withheld from employees' checks.

Question

Quizplus · Accepted Answer

Payroll-related costs include more than just the wages and salaries paid to employees. Employers must also pay payroll taxes such as Social Security and Medicare taxes, as well as contribute to programs such as workers' compensation insurance. These additional costs can add up and exceed the amount of gross pay earned by employees.

An Employer's Total Payroll-Related Costs Always Exceed the Wages and Salaries