Question

QUESTION 8 If a new full-time employee is paid $40,000 a year, and taxes and insurance add 24% of wages to the cost, what is the total cost of the employee to the company? ​

Answer 1

Answer: the total cost of the employee to the company is $49,600 per year.

Explanation: Taxes and insurance add 24% of wages to the cost, so the total cost of the employee to the company is:

Total cost = $40,000 + (24% x $40,000)

Total cost = $40,000 + $9,600

Total cost = $49,600

Therefore, the total cost of the employee to the company is $49,600 per year.