Stone Corporation has 29 employees and incurs a total wage and salaries expense of $1,392,000 per year. The following table shows various payroll amounts as a percentage of this annual wage and salaries expense:

Workers compensation insurance	5%
Social security and Medicare (employees' share an Employer's share combined)	15.3%
Pension and other postretirement costs expense (paid by employer)	5%
Personal income taxes withheld	10%
Unemployment taxes expense	2%

In addition, Stone provides group health insurance for its entire workforce. The cost of this insurance is $440 per month for each employee.

1. The company's annual payroll-related expenses amount to approximately:

a. $1,957,848.

b. $1,818,648.

c. $1,392,000.

d. $1,698,240.

2. Employees' annual "take-home-pay," totals approximately:

a. $1,146,312.

b. $826,152.

c. $1,252,800.

d. $1,238,880.

3. Some of the payroll-related expenses incurred by Stone Corporation are mandated by law, rather than negotiated with employees. During the current year, these mandated amounts increased Stone's payroll-related expenses by approximately:

a. $203,928.

b. $245,688.

c. $273,528.

d. $106,488.

Answer rating: 100% (QA)

1 Wages and salaries expense 1392000 Workers compensation insurance 69600 ... View the full answer