Question

6. Determine the annual cost, monthly cost, and burde markup for a salaried employee given the information in Table 8-2. Assume the employee takes full advantag of the 401(k) benefit. Table 8-2 Wage Information for Problem 6 Item Cost Wages Bonus Allowances Social Security Medicare FUTA SUTA Workers' Comp. General Liability 401(k) Health Insurance $145,000 $10,000 $500 per month for vehicle 6.2% of wages to $128,700 1.45% of wages 0.6% of wages to $7,000 3.0% of wages to $7,000 $4.25 per $100 of wages 1.02% of wages 100% match up to 6% of wages $375/month 7. Set up a worksheet to calculate il

Answer 1

Particulars    Annually

Wages $17,40,000 ($145000*12)

bonous $10000

Allowance    $6000 ($500*12)

'Social security $107880 (6.2% of wages or $128700 which ever is lower ie 6.2%of $17,40,000=107880 or $128700 which ever is lower ie final allowance is $107880)

Medicare $25230 (1.45% of wages ie 1.45%17,40,0000= $25230)

FUTA $7000 (0.6% of wages is 0.6% of $17,40,0000=$10440 or limit of

$7000 which ever is lower ie finally FUTA is $7000)

SUTA $7000   (3% of wages ie 3% of $17,40,000=$52200 or $7000 which ever is lower is Finally SUTA $7000)

Workers com $73950 ($17,40,000/$100*$4.25)

General liability $17748 ($17,40,000*1.02%=$17748)

401(k) $1,04,400 ($17,40,000*6% = $104400)

Health insurance $4500 ($375*12= $4500)

Total Annual cost = $21,03,708

Monthly cost = $175309 ($2103708/12)