Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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Textbook Question
Chapter 8, Problem 6P
Determine the annual cost, monthly cost, and burden markup for a salaried employee given the information in Table 8-2. Assume the employee takes full advantage of the 401(k) benefit.
Table 8-2 Wage Information for Problem 6
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Students have asked these similar questions
Critical Thinking 6 - 2 (Algo) Kai is the president of Zebra Antiques. An
employee, Reese Francis, is due a raise. Reese's current benefit analysis is as
follows: Yearly Benefit Costs Company Cost (Current) Employee Cost (Current)
Medical insurance $ 6,800.00 $ 1,020.00 Dental insurance 165.00 165.00 Life
insurance 354.00 0 AD&D 177.00 0 Short-term disability 70.80 0 Long - term
disability 35.40 0 401(k) 885.00 1, 770.00 Social Security 3, 584.53 3, 584.53
Medicare 838.32 838.32 Tuition reimbursement 2,450.00 0 Total yearly benefit
costs (employer) $ 15,360.05 Employee's annual salary 59,000.00 The total
value of the employee's compensation $ 74,360.05 Required: Compute the
benefit analysis assuming: 3 percent increase in pay. Reese will increase the
401(k) contribution to 8 percent with a company match of 50 percent up to a 3
percent contribution by the employer. 15 percent increase in medical and
dental insurance premiums. Note: Round your answers to 2 decimal places.\
Claude Lopez is the president of Zebra Antiques. His employee, Dwight Francis, is due a raise. Dwight's current benefit analysis is as
follows:
Yearly Benefit Costs
Medical insurance
Dental insurance
Life insurance
AD&D
Short-term disability
Long-term disability
401(k)
Social Security
Medicare
Tuition reimbursement
Total yearly benefit costs (employer)
Employee's annual salary
The total value of employee's compensation
Required:
Compute the benefit analysis assuming:
Company Cost
(Current)
$ 6,400.00
145.00
228.00
114.00
45.60
22.80
1,140.00
2,287.49
534.98
2,250.00
$ 13,167.87
38,000.00
$ 51,167.87
Employee Cost
(Current)
$ 960.00
145.00
0
0
0
0
2,280.00
2,287.49
534.98
0
3 percent increase in pay.
• Dwight will increase his 401(k) contribution to 8 percent with a company match of 50 percent up to 6 percent of the employee's
annual salary.
• 15 percent increase in medical and dental insurance premiums.
5. The following are included in an
employee benefits EXCEPT one.
Vacation leave
Sick leave
Transportation allowance
Shopping spree
Chapter 8 Solutions
Construction Accounting And Financial Management (4th Edition)
Ch. 8 - What is the difference between an allowance and a...Ch. 8 - Why are the social security and Medicare taxes...Ch. 8 - How does employee turnover affect the labor burden...Ch. 8 - What can a company do to reduce its workers'...Ch. 8 - Determine the annual cost, average hourly cost,...Ch. 8 - Determine the annual cost, monthly cost, and...
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