Report #2 World Measurement

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School

Ivy Tech Community College, Indianapolis *

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Course

BUSN 221

Subject

Finance

Date

Jan 9, 2024

Type

docx

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4

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1 Report #2 World Measurement Alysia Montano Nov 2023 Report #2 World Measurement BUSN222
2 Report #2 World Measurement Exhibit 1: Current compensation costs Average yearly wages $26,769. Average hourly wage equals to $13.12. Total compensation (wages plus benefits) $35,692 Dollar's value of yearly benefits per employee $8,923 Daily average number of hours paid 8.0 Benefits. 1. Legally required payments (employer's share only) $2,141.00 a. disability, and health insurance taxes $ 1,509.00 b. unemployment compensation $ 292.00 c. worker's compensation (including est. cost of self-insurance) $ 311.00. d. Railroad retirement tax & cash sickness etc. $ 29.00 a. Pension plan premium/pension payment not covered insurance $ 1,460.00. b. death benefits, hospital, life insurance premiums; surgical, medical $ 1,427.00 c. short term disability $ 83.00 d. salary continuation or long-term disability $ 57.00 e. dental insurance premiums $ 51.00 f. discount on goods and services purchased from company by employee $ 27.00. h. Employee meals furnished by company $0.
3 Report #2 World Measurement 4. payment for time not worked $ 2,769.00 a. paid vacations and payment in lieu of vacation (16 days average) $ 1,558.00. b payment for holidays not worked (9 days) $ 973.00 c. paid sick leave (10 days max) $172.00. d. payment for state or national guard duty; jury $ 66.00 pay allowances, payment for time lost due to death in family 5. other items $ 157.00 a. profit sharing payment $ 0 b. contribution for employee thrift plans $ 71.00. c. Christmas or other special bonuses, service award, suggestion award $ 0 d. employee education expenditures (tuition, refunds, etc.) $40.00 e. special wage payments ordered by court, payment to union steward $ 46.00. Total $ 8,923.00 Under Option 1: equal to copay amount Pension $300 Hospital, surgical, medical, and major medical premiums $350 Dental insurance premium $75 Saving from taking away one paid holiday $108.11 Dental insurance premium (15% of $51) $7.65 Coordinate social security with lightning pension plan (15% of $140) $219. Total cost savings under option 1 $1,202.46
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4 Report #2 World Measurement Calculation for savings from reduction of one paid holiday: Cost for paid rest periods etc. for a period of 9 days is $973. Cost for paid rest periods etc. for a time of 50 minutes is $864.89. Saving is $108.11 Eliminating the 10 minutes paid break does not affect the cost structure since employees leave. 10 minutes earlier Total cost of savings under option 1 is $ 1,202.46. Option 2 Benefits Cost of saving Hospital, surgical, medical, and major medical premium $350 Unemployment compensation (8% of 292) $23.36 Workers' compensation (3% of $ 311) $9.33 Life insurance premium, death premium, death benefits, hospital etc. (10% of $1,427) $142.7 Salary contribution or long-term disability (1% of $57) $0.57 Dental insurance premium (15% of $51) $7.65 Discount on goods and services purchased form company by employees (10% of $27) $2.7 1. Personally, I would recommend option 1. Option one offers savings of over 1,200 compared to saving significantly less (around 540) in the second option. Based on the goal of percent wage and compensation package costing less than 3-person, option one satisfies the objective. 2. Considering option one significantly saves more money than option two, option two will also have less employee input than needed in option one. In the benefits preferences it was noted that paid vacation was one of the items that were more preferred than others, in option two, one paid vacation gets taken away and since this was ranked very high, I doubt this would be tolerated by employees.