Question
Compensation Assignment MS Excel is recommended for this exercise but it can be done with a calculator. Part I You have job offers for similar
Compensation Assignment
MS Excel is recommended for this exercise but it can be done with a calculator.
Part I
You have job offers for similar management trainee programs from Marriott and Hilton as follows:
Marriott
Gross Annual Income:
o$44,000/yearas non-exempt, hourly wage employee (wages annualized for 40 hours/week)
oOT income: mandatory attendance in 1.50 hour evening training class, in addition to 40-hour work week, or 7.50 hours OT per week
Benefits
oRetirement Plan contribution: 10% of gross income paid by Marriott
oHealth insurance with a $20/week payroll deduction
oVision, Dental insurance, provided by Marriott at no cost to the employee
o15 days PTO per year
Hilton
Gross Income:
o$47,000/yearas non-exempt, hourly wage employee (wages annualized for 40 hours/week)
oOT income: mandatory attendance in 1.00 hour evening training class, in addition to 40-hour work week, or 5.00 hours per week
Benefits
oRetirement Plan contribution: 5% of gross income paid by Marriott
oHealth insurance with a $50/week payroll deduction
oVision insurance with a $30/week payroll deduction
oDental insurance with a $20/week payroll deduction
o15 days PTO per year
Total the value of each offer and see which is more attractive with the entire compensation package considered. Steps should include:
1.To determine gross income, you will need to find how much you would additionally earn in OT, therefore calculate hourly wage from and OT hourly wage. (Annual Weekly Hourly OT hourly)
2.Using the OT hourly wage, calculate OT wages per week, then for the year. Determine total gross pay for the year (regular wages + OT wages).
3.Calculate retirement plan contribution from employer.
4.Total monetary compensation from wages and retirement contribution.
5.Deduct payroll deductions for insurance.
6.Compare net sum of total package offers.
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