Question

An employee has an annual salary of $48,700. They receive $1,530 in health insurance and $2,810 in paid time off per year. They drive their personal vehicle for work which costs them $500 per month, but the company reimburses them $0.53 per mile for the total work miles driven. If the employee drives 9,000 miles for work for the year, what will be their total employment compensation?
a.
$43,130
b.
$51,810
c.
$57,810
d.
$59,470

Answer 1

Compute each component the employee receives from employment:

- Salary: $48,700
- Health insurance: $1,530
- Paid time off: $2,810
- Mileage reimbursement: $0.53 × 9,000 miles = $4,770

Total = 48,700 + 1,530 + 2,810 + 4,770 = $57,810

Answer: c. $57,810