An employee, whose hourly compensation is $18/hour, or $37,440 gross annual payroll. Additional Costs are as given
Question:
An employee, whose hourly compensation is $18/hour, or $37,440 gross annual payroll.
Additional Costs are as given below:
• $3,005 for payroll taxes (based on 2.7% state unemployment on the first $9,000, and no other state disability taxes)
• $3,536 for workers’ compensation insurance (at $10 per $100)
• $4,200 for health insurance ($350 per month)
• $1,060 for retirement benefits (3% of compensation)
• $720 for cell, telephone and/or Internet costs ($60 per month)
• $150 in uniforms (e.g., 4 company shirts at $25, 1 jacket at $50) or for office workers an equivalent amount in coffee(!)
• $6,000 in company vehicle usage (depreciation, gas and oil, maintenance, license, insurance, etc.), or for office workers an equivalent amount in equipment usage and maintenance. and office space
• $300 in small tools and equipment usage (at $25 per month) or for office workers an equivalent amount in office supplies
• $708 estimated annual bonus (2% of wages)
• $100 employer-paid snacks, meals, parties, entertainment
• $250 in training fees, seminars, etc.…
• Employee is potentially available for 2,080 hours
• Employee’s non-project paid time for the year:
• 6 holidays
• 10 vacation days
• 6 sick or personal days
• 2 days of training seminars
Calculate the employee’s total labor burden?
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas