5
QuizMultiple Choice

Employee Benefits

Question 5 • SHS Alt Personal Finance - 2021

Padraig receives total employment compensation of $70,000 and had $2,000 in job expenses. Which of the following could be true about Padraig’s gross pay and total employee benefits?

Answer
A
His total employee benefits are 2.8% of his annual gross pay of $72,000.
B
His total employee benefits are 2.9% of his annual gross pay of $68,000.
C
His total employee benefits are 12.5% of his annual gross pay of $64,000.
D
His total employee benefits are 13.3% of his annual gross pay of $60,000.

Explanation

Total employment compensation equals gross pay plus employee benefits, minus job expenses. So Padraig’s gross pay and benefits must add to $70,000 + $2,000 = $72,000. Choice C gives gross pay of $64,000 and benefits of 12.5% × $64,000 = $8,000; together they equal $72,000.

AI-written and checked against the verified answer.

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