Answer:
$1,600,200
Explanation:
The total staff expense can be calculated by using the following formula:
Total Staff Expense = (Salary For coming year with increment (STEP1) + Benefits In-Kind) * Total Employees
Here
Salary for Coming Year with Increment is $63,000 (<u>Step1</u>)
Total employees are 20 in Number
Benefits In-Kind per employee is 27% of salary which is $17,010 ($63,000 * 27%)
By putting values, we have:
Total Staff Expense = ($63,000 + $17,010) * 20 Employees
Total Staff Expense = $1,600,200
<u>STEP 1: Find Salary for Coming Year with Increment </u>
Salary for Coming Year with Increment = Average Salary Now * (1 + Increment)
Here
Average Salary is $60,000
Increment is 5%
Salary for Coming Year with Increment = $60,000 *(1 + 5%) = $63,000
EXCEL Formatted Spreadsheet For Care Clinic
Increment Avg. BIK T. Employees Total
5% Salary at 27%
Total Salary 60000 105% 63000 - 20 1,260,000
Benefits In-Kind 60000 105% 63000 27% 20 <u> 340200</u>
<u>1,600,200</u>
