Determine the annual cost, average hourly cost, and burden markup of an hourly employee given the following information. Assume the employee takes full advantage of the 401(k) benefit. The employee’s health insurance is paid for entirely by the employer. Last year the employee worked 2,104 hours and was paid for an additional 80 hours of vacation. The employee was paid for at least 40 hours each week and is to be paid time-and-a-half on any work over 40 hours per week.
ITEM COST_______________
Wages ............. $12/hr
Bonus ............. $500
Allowances ........... None
Social Security ......... 6.2% of wages to $84,900
Medicare ........... 1.45% of wages
FUTA ............ 0.8% of wages to $7,000
SUTA ............ 2.0% of wages to $20,000
Workers’ Comp. ........... $0.85 per $100 of wages
General Liability ........... 0.65% of wages
401(k) ............................ 50% match up to 6% of wages
Health Insurance ........... $200/month