95.4k views
0 votes
Payroll will account for what percentage of expenses in non-profit organizations?

a) 10-15%

b) 20-25%

c) 30-35%

d) 40-45%

User Aurore
by
9.2k points

1 Answer

7 votes

Final answer:

The percentage of expenses that payroll accounts for in nonprofit organizations can vary and is not provided in the options listed. However, payroll is a notable part of a non-profit's budget, generally due to the labor-intensive nature of the services provided. Payroll taxes are shared between employers and employees, impacting the overall compensation structure.

Step-by-step explanation:

The specific percentage of expenses that payroll will account for in non-profit organizations can vary widely depending on the particular organization's structure, mission, and management practices. There is not a one-size-fits-all answer, and the options provided (a) 10-15%, (b) 20-25%, (c) 30-35%, (d) 40-45%) do not directly correlate with standard nonprofit financial statistics. Generally, personnel costs are a significant part of a non-profit's budget because these organizations are often service-oriented, and labor is an important component of providing services.

However, the given percentages such as 10% for business or nonprofit, 8%% for other educational institutions, 6%% for medical school, and independent practice as part of budgetary expenses for payroll costs, are more closely associated with graduates' choices of employment sectors rather than a non-profit organization's overall expenses. Additionally, it's important to account for both the employer's and employee's share of payroll taxes; employees typically see 6.2% deducted from their paycheck for Social Security and 1.45% for Medicare, which though seemingly paid by the employer, economists suggest is effectively passed onto employees through lower wages.

User Chros
by
8.1k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories