Padraig recelves total employment compensation of \( \$ 70,000 \) and had \( \$ 2,000 \) in job expenses. Which of the following could be true about Padraig's gross pay and total employee benefits? a. His total employee benefits are \( 2.8 \% \) of his annual gross pay of \( \$ 72,000 \). b. His total employee benefits are \( 2.9 \% \) of his annual gross pay of \( \$ 68,000 \). c. His total employee benefits are \( 12.5 \% \) of his annual gross pay of \( \$ 64,000 \). d. His total employee benefits are \( 13.3 \% \) of his annual gross pay of \( \$ 60,000 \). Please select the best answer from the choices provided
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The Deep Dive
To determine which option could be true about Padraig's gross pay and employee benefits, we first need to calculate his net pay. Padraig's total compensation is \( \$70,000 \), and he had \( \$2,000 \) in job expenses. Therefore, his net pay is: \[ \text{Net Pay} = \text{Total Compensation} - \text{Job Expenses} = 70,000 - 2,000 = 68,000 \] Now, we can evaluate each option: a. \( 2.8\% \) of \( 72,000 = 0.028 \times 72,000 = 2,016 \) b. \( 2.9\% \) of \( 68,000 = 0.029 \times 68,000 = 1,972 \) c. \( 12.5\% \) of \( 64,000 = 0.125 \times 64,000 = 8,000 \) d. \( 13.3\% \) of \( 60,000 = 0.133 \times 60,000 = 7,980 \) Given Padraig's net pay is \( 68,000 \), option b shows a total employee benefit value that could align with him, given that the gross pay is lesser than the total compensation and the percentage calculated is reasonable. Thus, the answer is option **b**: His total employee benefits are \( 2.9\% \) of his annual gross pay of \( \$68,000 \).
