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If a new full-time employee is paid $50,000 a year, and taxes and insurance add  20% of wages to the cost, what is the total cost of the employee to the company?

Question

If a new full-time employee is paid $50,000 a year, and taxes and insurance add  20% of wages to the cost, what is the total cost of the employee to the company?

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Solution

Step 1: Identify the base salary of the employee, which is $50,000.

Step 2: Calculate the additional cost of taxes and insurance. This is done by multiplying the base salary by the percentage of additional costs. In this case, it would be $50,000 * 20% (or 0.20).

Step 3: Add the additional cost to the base salary to find the total cost of the employee to the company.

Let's calculate:

Step 2: 50,0002050,000 * 20% = 10,000

Step 3: 50,000(basesalary)+50,000 (base salary) + 10,000 (additional costs) = $60,000

So, the total cost of the employee to the company is $60,000.

This problem has been solved

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