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?

  

Answer rating: 100% (QA)

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