Determine the effective monthly cost, the total annual cost, and the labor burden markup for the Superintendent with the following wage and benefit information. (50 points)

Wages 202,000 $/year

Overtime Rate 1.75

Paid vacation 1 month

Bonus $5000 per year

Allowances $500 per quarter

Reimbursement upto $150 per month

Social Security Rate 6.20 %

Social Security wage cap $142,800

Medicare 1.45%

FUTA Rate 8.0%. 5.4% credit is received if SUTA is paid on time.

FUTA Limits $7,500

SUTA Rate 12.75 %

SUTA Limit $13,000

Worker's Comp. Rate $0.65/ $100

General Liability Rate 0.65 %

401(k) Matching $70%

401(k) Limit 9 %

Health Insurance (paid by employer) $ 1250 / Month. Another $350 is deducted from employees paycheck.

Conference $5000 / year

HSA $125/Month

FSA $225/ Month

LFSA $100/Month

DCA $125/ Month

Assumptions:

Assume SUTA was paid on time

Assume employee has 2 tax dependents

Assume employee will make the best use of all health/benefit accounts.

Assume employee will take the full advantage of retirement benefit.