Employee benefits might include paid vacations and health insurance. Many employers calculate the cost of bene fits as a percentage of total salaries.

INSTRUCTIONS 

Use the payroll register on page 320 and payroll tax information in this chapter to answer these questions.

1. If the employee benefits cost 24% of employee regular earnings, what is the benefits cost for this salary period?

2. If a new employee is to be hired for a 40-hour work week at wages of $8 an hour, what would be the total weekly cost for the new employee? (The company estimates its employee benefits cost at 22%.)