Question

1. A carpenter has a base wage of $21/hour. Given the following, what is the G.C.'s cost per hour to employ this carpenter: • FICA -6.9% • Federal Unemployment Insurance (FUTA) - 0.5% State Unemployment Insurance - 4.0% Workers Comp. Insurance - 15.5% Fringe Benefits - $3.59/hour

Answer 1

Cost per hour = Base pay + FICA + FUTA + SUTA + Fringe benefits

                        = 21 + (21 × 6.9%) + (21 × 0.5%) + (21 × 4%) + 3.59

                        = 21 + 1.449 + 0.105 + 0.84 + 3.59

                        = $26.984 per hour (Answer)

Note: workers compensation insurance is not based on wages; therefore, this should not be considered.