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 plus 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 employer payroll taxes and mandated programs such as workers' compensation insurance, which are additional expenses that employers incur in addition to the wages and salaries paid to employees. Therefore, these costs always exceed the gross wages and salaries earned by employees. Option A is incorrect because amounts withheld from employees' pay (such as income tax deductions) do not represent additional costs for the employer but rather reduce the total amount paid to employees. Option C is incorrect because the percentage of payroll-related costs can vary depending on several factors, such as the size of the company and the industry it operates in. Option D is incorrect because amounts withheld from employees' checks do not represent an additional cost for the employer but rather represent a reduction of the gross wages and salaries paid to employees.

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