Question

If total employee benefits are calculated as a percentage of their gross pay, which of the following employees receives the largest percentage of their gross pay in employee benefits?
a.
Employee A: gross pay $32,600 , total job benefits $33,600
b.
Employee B: gross pay $32,900 , total job benefits $34,000
c.
Employee C: gross pay $33,400 , total job benefits $33,900
d.
Employee D: gross pay $33,700 , total job benefits $34,700

Answer 1

Compute benefits as (total benefits) ÷ (gross pay):

- A: 33,600 / 32,600 ≈ 1.0307 = 103.07%
- B: 34,000 / 32,900 ≈ 1.0334 = 103.34%
- C: 33,900 / 33,400 ≈ 1.0150 = 101.50%
- D: 34,700 / 33,700 ≈ 1.0296 = 102.96%

Employee B receives the largest percentage.