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Problem: Payroll-related expenses (8 pts)

31. (65-67). The average employee of Dynamic Corporation earns gross pay of $75,000 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):

In addition, Dynamic pays $425 per month per employee for group health insurance.

Based on the above data, answer the questions 31a thru 31d - Indicate A, B, C, or D ( single letter CAPS, no comma or decimal point) in the answer boxes after each question:

31a. The company's annual payroll-related expense per employee is approximately:

A. $86,850 - Gross Pay plus 9% benefits plus health insurance

B. $95,850. - Gross Pay plus 21% benefits plus health insurance

C. $96,750. - Gross Pay plus 29% benefits without health insurance

D. $108,600. - Gross Pay plus 38% employee benefits expense

31a Answer __ ___________

31b. The average employees annual "take-home-pay," totals approximately:

A. $68,250 - Gross Pay less 9% employee payroll deductions

B. $57,900. - Gross Pay less 16% employee payroll deductions less health insurance

C. $62,250. - Gross Pay less 17% employee payroll deductions

D. $60,000. - Gross Pay less 20% employee payroll deductions

31b Answer __ ___________

31c. Other than Gross Pay, which of the following is the largest payroll-related expense per employee incurred by Dynamic?

A. Group health insurance premiums - $425 per month x 12 B. Income taxes expense - 9% of Gross Pay. C. The employer's share of social security taxes - 8% of Gross Pay. D. The combined shares of social security taxes. - 16% of Gross Pay.

31c Answer __ ___________

31d. Which of the following represents the largest amount withheld from the average employees paycheck?

A. Workers' compensation insurance

B. Personal income taxes

C. Social Security and Medicare employees share

D. Group Health Insurance

31d Answer __ ________

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