14
QuizMultiple Choice

Employee Benefits

Question 14 • POP Financial Math 26/27

The gross pay, benefits and job expenses for two different employees are shown below.Employee A: gross pay $57,200, employee benefits $5,300, job expenses $800Employee B: gross pay $56,900, employee benefits $6,200, job expenses $1,400Which of the following is a true statement?a.The total employment compensations for the two employees are the same.b.The total employment compensation for employee A is less than that of employee B.c.The total employment compensation for employee A is greater than that of employee B.d.The total employment compensations for the two employees can not be compared..

Answer
A
A
B
B
C
C
D
D

Explanation

Total employment compensation is gross pay plus benefits minus job expenses. Employee A’s compensation is $57,200 + $5,300 − $800 = $61,700. Employee B’s is $56,900 + $6,200 − $1,400 = $61,700, so the total employment compensations are the same.

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