Assume these facts: 50 employees with an average hourly rate of $18, working 8 hours per day with a day unpaid lunch. The employees average 75 hours of overtime per year. Holidays and vacations are fully paid. Insurance benefits paid by the employer equal $9.00 per hour. Please show and label your calculation.

What is the annual payroll cost?

What is the annual cost of benefits?

What will a 6% increase in the hourly wage cost over one year?

How will this increase affect the employers calculation of the cost of health insurance as part of the overall employee cost?