List of Possible Benefits Calculations Expected total number of customer service associates: 75 Place an "X" in the cell corresponding to the plan of your choice. All benefits other than taxes and Expected hourly wage: worker's compensation are optional, so you do not have to include Vision Care in your package of Expected hours worked per week: 40 benefits unless you decide to do so. Also, you should select no more than one each of Health, Dental Work weeks per year: 52 or Life benefits. For Vacation, Holidays, and Sick days, enter the number of days instead of an "X." Percentage of salary approved for benefits: Total salary: - Using information from the case materials and your best jugdment, determine Total benefits budget: - the numbers you need to put in cells C4 and C7. Once this is done it will automaically Current value of chosen benefits: - calculate the total amount of your benfits budget and legally required benefits in Over/Under budget: - cells M8-M18 Costs* Benefit Employee Only Employee+Family Total Costs FICA Social Security, % of first $90K earned by employee 6.20% - Medicare, % of FICA Gross earnings 1.45% - FUTA (Federal Unemployment Tax), % on first $7K of earnings 6.00% - Workers' Compensation, $ for every $100 of total payroll $0.08 - State Disability N/A EE Only E+F Health care insurance program % Family: 70% Number: 22 53 Fee for service plan 5,000 6,500 - - - PPO Plan 4,500 5,750 - - - HMO Plan 3,700 4,500 - - - HDHP Plan 3,400 4,000 - - - Dental Plan Regular Plan 1,050 1,300 - - - HMO dental 800 900 - - - Vision care 175 230 - - - Prescription drug 550 625 - - - Life insurance 1 year's salary 600 - 2 years' salary 800 - 3 years' salary 1,200 - Dependent life ($5,000 for spouse; $1,000 per child) 300 - Retirement plan Defined Benefit (Pension) 5.00% - Defined Contribution (401(k)) 3.00% - Tuition reimbursement 0.70% - Employee assistance program 0.50% - Child care subsidy 3.50% - Long-term disability High plan (100% salary after five consecutive days absent due to illness) 1,000 - Low plan (60% of salary after 10 consecutive days absent due to illness) 650 - Paid vacation, per day 106 0 - Paid holidays, per day 100 0 - Paid sick leave, per day 96 0 - * All costs annual unless otherwise stated

Question 1

What is the hourly wage that each customer service associate will be paid? (Answer is in Memo #2)

Enter your answer as a number only; do not use a dollar sign.

Question 2

What percentage will be used as the base rate for the benefits program? (Answer is in Memo #2)

Enter your answer as a number only; do not use a % sign.

Question 3

What is the total budget for your employee benefits program? (Answer will come from cell M9 in the spreadsheet)

Enter your answer as a number only; do not use a dollar sign or commas.

Question 4

How much of your total employee benefits program are you spending on mandatory benefits? (Answer will come from the total of cells M15-M19 in the spreadsheet)

Enter your answer as a number only; do not use a dollar sign or commas.

Question 5

Describe your benefits package in the space below. For example, if you provided five days of sick leave, write-5 days sick leave.

Question 6

What was the total cost of your benefits program? Enter the number in the space below.

Question 7

What were some of the challenges of creating this benefits program? Write your answer in the space provided below.