Answer: the total cost of the employee to the company is $49,600 per year.
Explanation: Taxes and insurance add 24% of wages to the cost, so the total cost of the employee to the company is:
Total cost = $40,000 + (24% x $40,000)
Total cost = $40,000 + $9,600
Total cost = $49,600
Therefore, the total cost of the employee to the company is $49,600 per year.