You have job offers for similar management trainee programs from Marriott and Hilton as follows:

Marriott

• Gross Annual Income:
  • $44,000/year as a non-exempt, hourly wage employee (wages annualized for 40 hours/week)
  • OT income: mandatory attendance in 1.50-hour evening training class, in addition to a 40-hour work week, or 7.50 hours OT per week
• Benefits
  • Retirement Plan contribution: 10% of gross income paid by Marriott
  • Health insurance with a $20/week payroll deduction
  • Vision, Dental insurance, provided by Marriott at no cost to the employee
  • 15 days PTO per year

Hilton

• Gross Income:
  • $47,000/year as non-exempt, hourly wage employee (wages annualized for 40 hours/week)
  • OT income: mandatory attendance in 1.00 hour evening training class, in addition to 40-hour work week, or 5.00 hours per week
• Benefits
  • Retirement Plan contribution: 5% of gross income paid by Marriott
  • Health insurance with a $50/week payroll deduction
  • Vision insurance with a $30/week payroll deduction
  • Dental insurance with a $20/week payroll deduction
  • 15 days PTO per year

Total the value of each offer and see which is more attractive with the entire compensation package considered. Answer the following questions:

1. To determine gross income, you will need to find how much you would additionally earn in OT, therefore calculate the hourly wage from an OT hourly wage. (Annual → Weekly → Hourly → OT hourly)
2. Using the OT hourly wage, calculate OT wages per week, then for the year. Determine total gross pay for the year (regular wages + OT wages).
3. Calculate retirement plan contribution from the employer.
4. Total monetary compensation from wages and retirement contributions.
5. Deduct payroll deductions for insurance.
6. Compare the net sum of total package offers.

Answer rating: 100% (QA)

In order to compare the two job offers you will need to find the hourly wage from an OT hourly wage Annual Weekly Hourly OT hourly The Marriott offer ... View the full answer