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Set up a worksheet to calculate the annual cost, the monthly cost, and the burden markup of a salaried employee. The spreadsheet should allow you to enter the annual salary, annual bonus ($/year), monthly allowances ($/month), the amount of employee expenses that are not subject to social security and Medicare taxes, social security percentage rate and limit, Medicare percentage rate, FUTA percentage rate and limit, SUTA percentage rate and limit, workers’ compensation insurance rate ($/$100), general liability percentage rate, 401(k) matching rate and limit, monthly health insurance payment, monthly union payments, and other monthly benefits. Assume the employee takes full advantage of the 401(k) benefit.
1. Determine the annual cost, monthly cost, and burden markup for a salaried employee given the following information. Assume the employee takes full advantage of the 401(k) benefit.
2. Determine the annual budget for office utilities using the data from the past 12 months shown in Figure 9-7. Utility costs are expected to increase by 8% per year due to inflation. None of the company’s goals are expected to affect the utility costs.
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3. Determine the projected costs for utilities in year 5. The inflation rate has been determined to be 0.222 and the initial cost is $57.39.
4. Determine the projected costs for utilities in year 10. The inflation rate has been determined to be 0.076 and the initial cost is $56.27.
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