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A company has a fortnightly payroll of $200,000. On average, 50% of the employees take their full entitlement of two weeks sick leave, 30% take half of their full entitlement and 10% take only one day of sick leave per year. The company deducts 20% income tax and 10% for superannuation. All deductions are paid out by the 15th of the following month.
Problem 1: Assume the pay period ends on Friday 3rd July and the financial year ends on 30th June. What is the annual fortnight sick leave expense?
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