Question

Benefits can represent more than ______ of the employer's total payroll costs. a. 28 percent b. 7 percent c. 66 percent d. 12 percent

Answer 1

b. 7 percent

Step-by-step explanation:

Benefits here means the statutory benefits that the employees have a right to receive. These on the legal terms are the requirements, as the employer is required to contribute around 7.65% of the salary paid to the employee towards benefits of social security and Medicare.

This clearly is the standard set for the payroll. Now this also provides for the minimum contributions, thus it provides that at-least these are to be made.

Thus, each employer when making a standard salary shall contribute more than 7% towards the benefits of the employees.