The actual calculations performed by TimeTrax each week for each employee to establish the employee's true cost-per-hour are somewhat complex. Generally, we don't expect the typical TimeTrax user to wade through these calculations, but we felt it was important to provide them for the following reasons:
We invite those of you who are so inclined to inspect these calculations, and we invite your observations and remarks on the subject. Please feel free to email me directly at bond@powertoolssoftware.com
These are the cost-per-hour calculations for a typical hourly employee working 40 hours in a week at $10.00 per hour.
| PAYROLL COST CALCULATIONS by EMPLOYEE |
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| STEP 1 ENTER BASIC DATA |
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| 1.1 |
Hours |
TOTAL Hours Worked |
From Employee Time Sheet |
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40.00 |
hrs |
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| 1.2 |
Pay Rates |
Reg Hourly Rate |
From Employee Records |
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$10.00 |
/hr |
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Overtime Hourly Rate |
From Employee Records |
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$15.00 |
/hr |
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OR |
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OR |
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Annual Salary |
From Employee Records |
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$0.00 |
/yr |
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| 1.3 |
Payroll Taxes |
FICA Rate |
From the IRS |
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7.65% |
rate |
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FUTA Rate |
From the IRS |
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0.80% |
rate |
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SUTA Rate |
From State Unemployment Office |
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2.40% |
rate |
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Other Taxes |
Varies |
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0.00% |
rate |
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| 1.4 |
WC Rates |
Experience Modifier |
From Insurance Agent |
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0.95 |
factor |
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Employee WC Rate |
Default Rate for WC by Employee |
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32.50% |
rate |
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| 1.5 |
Benefits |
Insurance |
From Employee Records |
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$125.00 |
/mth |
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Retirement |
From Employee Records |
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$0.00 |
/mth |
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Child Care |
From Employee Records |
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$0.00 |
/mth |
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Benefit 1 |
From Employee Records |
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$0.00 |
/mth |
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Benefit 2 |
From Employee Records |
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$0.00 |
/mth |
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| 1.6 |
Pd Time Off |
Average Hours/wk |
From Employee Records |
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40.00 |
hrs/wk |
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(PTO) |
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Company PTO |
From Employee Records |
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40.00 |
hrs/yr |
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Individual PTO |
From Employee Records |
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+ |
40.00 |
hrs/yr |
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Annual PTO Hours |
Sum of all of the above |
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= |
80.00 |
hrs/yr |
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| STEP 2 CALCULATE EMPLOYEE EARNINGS |
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| 2.1 |
Regular Pay |
Regular Hourly Rate |
From STEP 1.2 |
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$10.00 |
/hr |
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Regular Hours |
All Hours less than or equal to 40 |
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x |
40.00 |
hrs |
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TOTAL Regular Pay |
Regular Hours x Hourly Rate |
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= |
$400.00 |
/wk |
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| 2.2 |
Overtime Pay |
Overtime Hourly Rate |
From STEP 1.2 |
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$15.00 |
/hr |
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Overtime Hrs |
All Hours greater than 40 |
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x |
0.00 |
hrs |
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TOTAL Overtime Pay |
Overtime Hours x Overtime Rate |
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= |
$0.00 |
/wk |
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| 2.3 |
Salary |
Annual Salary |
From STEP 1.2 |
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$0 |
/yr |
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Weeks per Year |
Constant @ 52 wks per/yr |
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÷ |
52 |
wks |
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TOTAL Salary |
Annual Salary ÷ 52 |
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= |
$0.00 |
/wk |
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| 2.4 |
TOTAL EMPLOYEE EARNINGS |
From STEPS 2.1+2.2 or STEP 2.3 |
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$400.00 |
/wk |
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| STEP 3 CALCULATE PAYROLL TAXES |
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| 3.1 |
FICA |
Employee Earnings |
From STEP 2.4 |
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$400.00 |
/wk |
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FICA Rate |
From STEP 1.3 |
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x |
7.65% |
rate |
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TOTAL FICA Costs |
Employee Pay x FICA Rate |
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= |
$30.60 |
/wk |
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| 3.2 |
FUTA |
Employee Earnings |
From STEP 2.4 |
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$400.00 |
/wk |
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FUTA Rate |
From STEP 1.3 |
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x |
0.80% |
rate |
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TOTAL FUTA Costs |
Employee Pay x FUTA Rate |
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= |
$3.20 |
/wk |
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| 3.3 |
SUTA |
Employee Earnings |
From STEP 2.4 |
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$400.00 |
/wk |
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SUTA Rate |
From STEP 1.3 |
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x |
2.40% |
rate |
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TOTAL SUTA Costs |
Employee Pay x SUTA Rate |
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= |
$9.60 |
/wk |
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| 3.4 |
Other Tax |
Employee Earnings |
From STEP 2.4 |
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$400.00 |
/wk |
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Other Rate |
From STEP 1.3 |
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x |
0.00% |
rate |
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TOTAL Other Taxes |
Employee Pay x Other Tax Rate |
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= |
$0.00 |
/wk |
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| STEP 4 CALCULATE WC COSTS |
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| 4.1 |
WC by Employee |
WC Rate |
From STEP 1.4 |
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32.50% |
rate |
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WC Modifier |
From STEP 1.4 |
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x |
0.95 |
factor |
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Net WC Rate |
WC Rate x WC Modifier |
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= |
30.88% |
net rate |
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Emp Earnings |
From STEP 2.4 |
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x |
$400.00 |
/wk |
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TOTAL WC Costs |
Employee Earnings x WC Rate |
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= |
$123.50 |
/wk |
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| STEP 5 CALCULATE EMPLOYEE BENEFITS |
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| 5.1 |
Insurance |
Monthly Cost |
From STEP 1.5 |
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$125.00 |
/mo |
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Months per year |
Constant @ 12 months per/yr |
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x |
12 |
mts |
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Yearly Cost |
Monthly Cost x 12 months |
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= |
$1,500.00 |
/yr |
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Weeks per year |
Constant @ 52 wks per/yr |
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÷ |
52 |
wks |
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TOTAL Insurance Cost |
Yearly Cost ÷ 52 weeks |
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= |
$28.85 |
/wk |
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| 5.2 |
Retirement |
Monthly Cost |
From STEP 1.5 |
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$0.00 |
/mo |
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Months per year |
Constant @ 12 months per/yr |
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x |
12 |
mts |
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Yearly Cost |
Monthly Cost x 12 months |
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= |
$0.00 |
/yr |
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Weeks per year |
Constant @ 52 wks per/yr |
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÷ |
52 |
wks |
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TOTAL Retirement Cost |
Yearly Cost ÷ 52 weeks |
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= |
$0.00 |
/wk |
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| 5.3 |
Child Care |
Monthly Cost |
From STEP 1.5 |
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$0.00 |
/mo |
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Months per year |
Constant @ 12 months per/yr |
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x |
12 |
mts |
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Yearly Cost |
Monthly Cost x 12 months |
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= |
$0.00 |
/yr |
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Weeks per year |
Constant @ 52 wks per/yr |
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÷ |
52 |
wks |
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TOTAL Child Care Cost |
Yearly Cost ÷ 52 weeks |
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= |
$0.00 |
/wk |
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| 5.4 |
Benefit 1 |
Monthly Cost |
From STEP 1.5 |
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$0.00 |
/mo |
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Months per year |
Constant @ 12 months per/yr |
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x |
12 |
mts |
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Yearly Cost |
Monthly Cost x 12 months |
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= |
$0.00 |
/yr |
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Weeks per year |
Constant @ 52 wks per/yr |
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÷ |
52 |
wks |
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TOTAL Benefit 1 Cost |
Yearly Cost ÷ 52 weeks |
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= |
$0.00 |
/wk |
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| 5.5 |
Benefit 2 |
Monthly Cost |
From STEP 1.5 |
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$0.00 |
/mo |
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Months per year |
Constant @ 12 months per/yr |
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x |
12 |
mts |
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Yearly Cost |
Monthly Cost x 12 months |
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= |
$0.00 |
/yr |
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Weeks per year |
Constant @ 52 wks per/yr |
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÷ |
52 |
wks |
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TOTAL Benefit 2 Cost |
Yearly Cost ÷ 52 weeks |
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= |
$0.00 |
/wk |
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| STEP 6 CALCULATE PAID TIME OFF (PTO) |
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| 6.1 |
Basic Data |
Hourly Pay Rate |
From STEP 1.2 |
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$10.00 |
/hr |
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Total Hours Worked |
From STEP 1.1 |
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x |
40.00 |
hrs |
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Earnings (no OT) |
Hourly Rate x Total Hours |
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= |
$400.00 |
/wk |
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| 6.2 |
Payroll Taxes |
FICA |
From STEP 1.3 |
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+ |
7.65% |
rate |
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FUTA |
From STEP 1.3 |
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+ |
0.80% |
rate |
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SUTA |
From STEP 1.3 |
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+ |
2.40% |
rate |
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Other Taxes |
From STEP 1.3 |
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+ |
0.00% |
rate |
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SUBTOTAL |
Sum all of the above |
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= |
10.85% |
rate |
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Earnings (no OT) |
From STEP 6.1 |
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x |
$400.00 |
/wk |
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TOTAL Payroll Taxes |
Payroll Tax Rate x Earnings |
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= |
$43.40 |
/wk |
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| 6.3 |
Benefits |
Insurance |
From STEP 5.1 |
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+ |
$28.85 |
/wk |
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Retirement |
From STEP 5.2 |
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+ |
$0.00 |
/wk |
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Child Card |
From STEP 5.3 |
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+ |
$0.00 |
/wk |
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Benefits 1 |
From STEP 5.4 |
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+ |
$0.00 |
/wk |
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Benefits 2 |
From STEP 5.5 |
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+ |
$0.00 |
/wk |
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TOTAL Benefits |
Sum of all of the above |
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= |
$28.85 |
/wk |
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| 6.4 |
Hourly Average |
Employee Earnings |
From STEP 6.1 |
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+ |
$400.00 |
/wk |
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Payroll Taxes |
From STEP 6.2 |
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$43.40 |
/wk |
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Benefits |
From STEP 6.3 |
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$28.85 |
/wk |
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TOTAL Payroll Costs |
Sum all of the above |
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= |
$472.25 |
/wk |
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TOTAL Hours |
From STEP 1.1 |
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÷ |
40.00 |
hrs |
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Hourly Average |
Total Payroll Cost ÷ Total Hours |
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= |
$11.81 |
/hr |
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| 6.5 |
Working Hours |
Avg Hrs/week |
From STEP 1.6 |
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40.00 |
hrs |
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per Year |
Weeks per year |
Constant @ 52 wks per/yr |
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x |
52 |
wks |
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Annual Hrs |
Avg hrs/week x 52 weeks/yr |
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= |
2,080.00 |
hrs |
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Annual PTO Hrs |
From STEP 1.6 |
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- |
80.00 |
hrs |
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Productive Hrs |
Total Annual Hrs - Annual PTO hours |
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= |
2,000.00 |
hrs |
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| 6.6 |
PTO Base Cost |
Annual PTO hrs |
From STEP 1.6 |
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80.00 |
hrs |
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Productive Hrs |
Total Annual Hrs - Annual PTO hours |
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÷ |
2,000.00 |
hrs |
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Ratio |
Annual PTO Hrs ÷ Annual Working Hrs |
= |
4.0000% |
ratio |
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TOTAL Payroll Costs |
From STEP 6.4 |
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x |
$472.25 |
/wk |
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TOTAL PTO Cost |
Total Payroll Costs x Ratio |
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= |
$18.89 |
/wk |
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| 6.7 |
PTO Cost using |
PTO Base Cost |
From STEP 6.6 |
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$18.89 |
/wk |
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WC by Employee |
WC Rate |
From STEP 4.1 |
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x |
30.88% |
rate |
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PTO WC Cost |
PTO Base Cost x WC Rate |
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= |
$6.14 |
/wk |
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PTO Base Cost |
From STEP 6.6 |
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+ |
$18.89 |
/wk |
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PTO Cost with WC |
PTO Base Cost + PTO WC Cost |
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= |
$25.03 |
/wk |
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| STEP 7 CALCULATE PAYROLL COSTS without WC |
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| 7.1 |
Emp Earnings |
Regular & OT or Salary |
From STEP 2.4 |
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= |
$400.00 |
/wk |
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| 7.2 |
Payroll Taxes |
FICA |
From STEP 3.1 |
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+ |
$30.60 |
/wk |
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FUTA |
From STEP 3.2 |
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+ |
$3.20 |
/wk |
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SUTA |
From STEP 3.3 |
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+ |
$9.60 |
/wk |
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Other |
From STEP 3.4 |
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+ |
$0.00 |
/wk |
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TOTAL Payroll Taxes |
Sum of all the above |
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= |
$43.40 |
/wk |
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| 7.3 |
Benefits |
Insurance |
From STEP 5.1 |
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+ |
$28.85 |
/wk |
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Retirement |
From STEP 5.2 |
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+ |
$0.00 |
/wk |
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Child Care |
From STEP 5.3 |
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+ |
$0.00 |
/wk |
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Benefits 1 |
From STEP 5.4 |
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+ |
$0.00 |
/wk |
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Benefits 2 |
From STEP 5.5 |
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+ |
$0.00 |
/wk |
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TOTAL Benefits |
Sum of all the above |
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= |
$28.85 |
/wk |
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| 7.4 |
PTO Costs |
TOTAL PTO Costs |
From STEP 6.6 |
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= |
$18.89 |
/wk |
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| 7.5 |
TOTAL |
TOTAL Costs (no WC) |
Earnings, Taxes, Benefits & PTO |
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= |
$491.14 |
/wk |
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| STEP 8 CALCULATE TOTAL COST and COST per HOUR |
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| 8.1 |
WC by Employee |
TOTAL All Other Costs |
From STEP 7.5 |
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$491.14 |
/wk |
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WC Costs |
From STEP 4.1 |
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+ |
$123.50 |
/wk |
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TOTAL All Payroll Costs |
Earnings, Taxes, WC, Benefits & PTO |
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= |
$614.64 |
/wk |
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TOTAL Hours |
From STEP 1.1 |
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÷ |
40.00 |
hrs |
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COST per hour |
For WC by Employee |
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= |
$15.37 |
avg |
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| STEP 9 SUMMARY |
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| 9.1 |
Employee Earnings |
From STEP 2.4 |
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= |
$400.00 |
/wk |
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| 9.2 |
WC by Employee |
Avg Cost per Hour |
From STEP 8.1 |
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= |
$15.37 |
/hr |
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| STEP 10 FOLLOW UP |
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| At this point, you have established the employee's average hourly cost under both the WC by Employee |
| and the WC by Cost Code methods. You are now ready to utilize these average hourly costs to calculate |
| the costs of the individual time sheet entries, which will provide you with the figures to post your payroll |
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| costs accurately. |
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These are the cost-per-hour calculations for a typical hourly employee, with scenarios for five different cost codes.
| PAYROLL
COST CALCULATIONS by COST CODE |
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| STEP 1 ENTER BASIC DATA |
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| 1.1 |
Hours |
TOTAL Hours Worked |
From Employee Time Sheet |
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40.00 |
hrs |
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| 1.2 |
Pay Rates |
Reg Hourly Rate |
From Employee Records |
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$10.00 |
/hr |
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Overtime Hourly Rate |
From Employee Records |
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$15.00 |
/hr |
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OR |
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OR |
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Annual Salary |
From Employee Records |
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$0.00 |
/yr |
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| 1.3 |
Payroll Taxes |
FICA Rate |
From the IRS |
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7.65% |
rate |
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FUTA Rate |
From the IRS |
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0.80% |
rate |
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SUTA Rate |
From State Unemployment Office |
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2.40% |
rate |
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Other Taxes |
Varies |
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0.00% |
rate |
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| 1.4 |
WC Rates |
Experience Modifier |
From Insurance Agent |
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0.95 |
factor |
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Laborer Rate |
From Insurance Agent |
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20.50% |
rate |
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Framing Carpenter Rate |
From Insurance Agent |
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32.50% |
rate |
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Finish Carpenter Rate |
From Insurance Agent |
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19.50% |
rate |
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Supervisor Rate |
From Insurance Agent |
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8.90% |
rate |
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Office / Clerical Rate |
From Insurance Agent |
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1.20% |
rate |
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| 1.5 |
Benefits |
Insurance |
From Employee Records |
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$125.00 |
/mth |
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Retirement |
From Employee Records |
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$0.00 |
/mth |
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Child Care |
From Employee Records |
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$0.00 |
/mth |
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Benefit 1 |
From Employee Records |
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$0.00 |
/mth |
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Benefit 2 |
From Employee Records |
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$0.00 |
/mth |
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| 1.6 |
Pd Time Off |
Average Hours/wk |
From Employee Records |
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40.00 |
hrs/wk |
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(PTO) |
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Company PTO |
From Employee Records |
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+ |
40.00 |
hrs/yr |
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Employee PTO |
From Employee Records |
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+ |
40.00 |
hrs/yr |
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Annual PTO Hours |
Sum of all of the above |
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= |
80.00 |
hrs/yr |
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| STEP 2 CALCULATE EMPLOYEE EARNINGS |
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| 2.1 |
Regular Pay |
Regular Hourly Rate |
From STEP 1.2 |
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$10.00 |
/hr |
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Regular Hours |
All Hours less than or equal to 40 |
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x |
40.00 |
hrs |
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TOTAL Regular Pay |
Regular Hours x Hourly Rate |
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= |
$400.00 |
/wk |
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| 2.2 |
Overtime Pay |
Overtime Hourly Rate |
From STEP 1.2 |
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$15.00 |
/hr |
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Overtime Hrs |
All Hours greater than 40 |
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x |
0.00 |
hrs |
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TOTAL Overtime Pay |
Overtime Hours x Overtime Rate |
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= |
$0.00 |
/wk |
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| 2.3 |
Salary |
Annual Salary |
From STEP 1.2 |
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$0 |
/yr |
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Weeks per Year |
Constant @ 52 wks per/yr |
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÷ |
52 |
wks |
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TOTAL Salary |
Annual Salary ÷ 52 |
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= |
$0.00 |
/wk |
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| 2.4 |
TOTAL EMPLOYEE EARNINGS |
From STEPS 2.1+2.2 or STEP 2.3 |
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$400.00 |
/wk |
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| STEP 3 CALCULATE PAYROLL TAXES |
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| 3.1 |
FICA |
Employee Earnings |
From STEP 2.4 |
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$400.00 |
/wk |
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FICA Rate |
From STEP 1.3 |
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x |
7.65% |
rate |
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TOTAL FICA Costs |
Employee Pay x FICA Rate |
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= |
$30.60 |
/wk |
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| 3.2 |
FUTA |
Employee Earnings |
From STEP 2.4 |
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$400.00 |
/wk |
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FUTA Rate |
From STEP 1.3 |
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x |
0.80% |
rate |
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TOTAL FUTA Costs |
Employee Pay x FUTA Rate |
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= |
$3.20 |
/wk |
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| 3.3 |
SUTA |
Employee Earnings |
From STEP 2.4 |
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$400.00 |
/wk |
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SUTA Rate |
From STEP 1.3 |
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x |
2.40% |
rate |
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TOTAL SUTA Costs |
Employee Pay x SUTA Rate |
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= |
$9.60 |
/wk |
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| 3.4 |
Other Tax |
Employee Earnings |
From STEP 2.4 |
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$400.00 |
/wk |
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Other Rate |
From STEP 1.3 |
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x |
0.00% |
rate |
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TOTAL Other Taxes |
Employee Pay x Other Tax Rate |
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= |
$0.00 |
/wk |
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| STEP 4 CALCULATE WC COSTS |
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| 4.2 |
General Labor |
WC Rate |
From STEP 1.4 |
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20.50% |
rate |
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WC Modifier |
From STEP 1.4 |
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x |
0.95 |
factor |
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Net WC Rate |
WC Rate x WC Modifier |
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= |
19.48% |
net rate |
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Emp Earnings |
From STEP 2.4 |
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x |
$400.00 |
/wk |
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TOTAL WC Costs |
Employee Earnings x WC Rate |
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= |
$77.90 |
/wk |
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| 4.3 |
Framing Carpentry |
WC Rate |
From STEP 1.4 |
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32.50% |
rate |
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WC Modifier |
From STEP 1.4 |
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x |
0.95 |
factor |
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Net WC Rate |
WC Rate x WC Modifier |
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= |
30.88% |
net rate |
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Emp Earnings |
From STEP 2.4 |
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x |
$400.00 |
/wk |
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TOTAL WC Costs |
Employee Earnings x WC Rate |
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= |
$123.50 |
/wk |
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| 4.4 |
Finish Carpentry |
WC Rate |
From STEP 1.4 |
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19.50% |
rate |
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WC Modifier |
From STEP 1.4 |
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x |
0.95 |
factor |
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Net WC Rate |
WC Rate x WC Modifier |
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= |
18.53% |
net rate |
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Emp Earnings |
From STEP 2.4 |
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x |
$400.00 |
/wk |
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TOTAL WC Costs |
Employee Earnings x WC Rate |
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= |
$74.10 |
/wk |
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| 4.5 |
Supervision |
WC Rate |
From STEP 1.4 |
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8.90% |
rate |
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WC Modifier |
From STEP 1.4 |
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x |
0.95 |
factor |
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Net WC Rate |
WC Rate x WC Modifier |
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= |
8.46% |
net rate |
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Emp Earnings |
From STEP 2.4 |
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x |
$400.00 |
/wk |
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TOTAL WC Costs |
Employee Earnings x WC Rate |
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= |
$33.82 |
/wk |
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| 4.6 |
Office / Clerical |
WC Rate |
From STEP 1.4 |
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1.20% |
rate |
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WC Modifier |
From STEP 1.4 |
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x |
0.95 |
factor |
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Net WC Rate |
WC Rate x WC Modifier |
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= |
1.14% |
net rate |
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Emp Earnings |
From STEP 2.4 |
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x |
$400.00 |
/wk |
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TOTAL WC Costs |
Employee Earnings x WC Rate |
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= |
$4.56 |
/wk |
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| STEP 5 CALCULATE EMPLOYEE BENEFITS |
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| 5.1 |
Insurance |
Monthly Cost |
From STEP 1.5 |
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$125.00 |
/mo |
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Months per year |
Constant @ 12 months per/yr |
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x |
12 |
mts |
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Yearly Cost |
Monthly Cost x 12 months |
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= |
$1,500.00 |
/yr |
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Weeks per year |
Constant @ 52 wks per/yr |
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÷ |
52 |
wks |
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TOTAL Insurance Cost |
Yearly Cost ÷ 52 weeks |
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= |
$28.85 |
/wk |
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| 5.2 |
Retirement |
Monthly Cost |
From STEP 1.5 |
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$0.00 |
/mo |
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Months per year |
Constant @ 12 months per/yr |
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x |
12 |
mts |
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Yearly Cost |
Monthly Cost x 12 months |
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= |
$0.00 |
/yr |
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Weeks per year |
Constant @ 52 wks per/yr |
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÷ |
52 |
wks |
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TOTAL Retirement Cost |
Yearly Cost ÷ 52 weeks |
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= |
$0.00 |
/wk |
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| 5.3 |
Child Care |
Monthly Cost |
From STEP 1.5 |
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$0.00 |
/mo |
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Months per year |
Constant @ 12 months per/yr |
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x |
12 |
mts |
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Yearly Cost |
Monthly Cost x 12 months |
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= |
$0.00 |
/yr |
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Weeks per year |
Constant @ 52 wks per/yr |
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÷ |
52 |
wks |
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TOTAL Child Care Cost |
Yearly Cost ÷ 52 weeks |
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= |
$0.00 |
/wk |
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| 5.4 |
Benefit 1 |
Monthly Cost |
From STEP 1.5 |
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$0.00 |
/mo |
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Months per year |
Constant @ 12 months per/yr |
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x |
12 |
mts |
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Yearly Cost |
Monthly Cost x 12 months |
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= |
$0.00 |
/yr |
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Weeks per year |
Constant @ 52 wks per/yr |
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÷ |
52 |
wks |
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TOTAL Benefit 1 Cost |
Yearly Cost ÷ 52 weeks |
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= |
$0.00 |
/wk |
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| 5.5 |
Benefit 2 |
Monthly Cost |
From STEP 1.5 |
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$0.00 |
/mo |
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Months per year |
Constant @ 12 months per/yr |
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x |
12 |
mts |
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Yearly Cost |
Monthly Cost x 12 months |
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= |
$0.00 |
/yr |
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Weeks per year |
Constant @ 52 wks per/yr |
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÷ |
52 |
wks |
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TOTAL Benefit 2 Cost |
Yearly Cost ÷ 52 weeks |
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= |
$0.00 |
/wk |
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| STEP 6 CALCULATE PAID TIME OFF (PTO) |
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| 6.1 |
Basic Data |
Hourly Pay Rate |
From STEP 1.2 |
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$10.00 |
/hr |
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Total Hours Worked |
From STEP 1.1 |
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x |
40.00 |
hrs |
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Earnings (no OT) |
Hourly Rate x Total Hours |
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= |
$400.00 |
/wk |
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| 6.2 |
Payroll Taxes |
FICA |
From STEP 1.3 |
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+ |
7.65% |
rate |
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FUTA |
From STEP 1.3 |
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+ |
0.80% |
rate |
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SUTA |
From STEP 1.3 |
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+ |
2.40% |
rate |
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Other Taxes |
From STEP 1.3 |
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+ |
0.00% |
rate |
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SUBTOTAL |
Sum all of the above |
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= |
10.85% |
rate |
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Earnings (no OT) |
From STEP 6.1 |
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x |
$400.00 |
/wk |
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TOTAL Payroll Taxes |
Payroll Tax Rate x Earnings |
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= |
$43.40 |
/wk |
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| 6.3 |
Benefits |
Insurance |
From STEP 5.1 |
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+ |
$28.85 |
/wk |
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Retirement |
From STEP 5.2 |
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+ |
$0.00 |
/wk |
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Child Card |
From STEP 5.3 |
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+ |
$0.00 |
/wk |
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Benefits 1 |
From STEP 5.4 |
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+ |
$0.00 |
/wk |
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Benefits 2 |
From STEP 5.5 |
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+ |
$0.00 |
/wk |
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TOTAL Benefits |
Sum of all of the above |
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= |
$28.85 |
/wk |
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| 6.4 |
Hourly Average |
Employee Earnings |
From STEP 6.1 |
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+ |
$400.00 |
/wk |
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Payroll Taxes |
From STEP 6.2 |
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+ |
$43.40 |
/wk |
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Benefits |
From STEP 6.3 |
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+ |
$28.85 |
/wk |
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TOTAL Payroll Costs |
Sum all of the above |
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= |
$472.25 |
/wk |
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TOTAL Hours |
From STEP 1.1 |
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÷ |
40.00 |
hrs |
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Hourly Average |
Total Payroll Cost ÷ Total Hours |
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= |
$11.81 |
/hr |
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| 6.5 |
Working Hours |
Avg Hrs/week |
From STEP 1.6 |
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40.00 |
hrs |
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per Year |
Weeks per year |
Constant @ 52 wks per/yr |
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x |
52 |
wks |
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Annual Hrs |
Avg hrs/week x 52 weeks/yr |
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= |
2,080.00 |
hrs |
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Annual PTO Hrs |
From STEP 1.6 |
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- |
80.00 |
hrs |
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Productive Hrs |
Total Annual Hrs - Annual PTO hours |
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= |
2,000.00 |
hrs |
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| 6.6 |
PTO Base Cost |
Annual PTO hrs |
From STEP 1.6 |
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80.00 |
hrs |
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Productive Hrs |
Total Annual Hrs - Annual PTO hours |
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÷ |
2,000.00 |
hrs |
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Ratio |
Annual PTO Hrs ÷ Annual Working Hrs |
= |
4.0000% |
ratio |
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TOTAL Payroll Costs |
From STEP 6.4 |
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x |
$472.25 |
/wk |
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TOTAL PTO Cost |
Total Payroll Costs x Ratio |
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= |
$18.89 |
/wk |
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| 6.8 |
PTO Cost using |
PTO Base Cost |
From STEP 6.6 |
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$18.89 |
/wk |
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WC by Cost Code |
WC Rate |
From STEP 4.6 |
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x |
1.14% |
rate |
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PTO WC Cost |
PTO Base Cost x WC Rate |
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= |
$0.22 |
/wk |
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PTO Base Cost |
From STEP 6.6 |
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+ |
$18.89 |
/wk |
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PTO Cost with WC |
PTO Base Cost + PTO WC Cost |
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= |
$19.11 |
/wk |
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| STEP 7 CALCULATE PAYROLL COSTS without WC |
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| 7.1 |
Emp Earnings |
Regular & OT or Salary |
From STEP 2.4 |
|
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= |
$400.00 |
/wk |
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| 7.2 |
Payroll Taxes |
FICA |
From STEP 3.1 |
|
|
+ |
$30.60 |
/wk |
|
|
FUTA |
From STEP 3.2 |
|
|
+ |
$3.20 |
/wk |
|
|
SUTA |
From STEP 3.3 |
|
|
+ |
$9.60 |
/wk |
|
|
Other |
From STEP 3.4 |
|
|
+ |
$0.00 |
/wk |
|
|
|
TOTAL Payroll Taxes |
Sum of all the above |
|
|
= |
$43.40 |
/wk |
|
|
|
|
|
|
|
|
|
|
| 7.3 |
Benefits |
Insurance |
From STEP 5.1 |
|
|
+ |
$28.85 |
/wk |
|
|
Retirement |
From STEP 5.2 |
|
|
+ |
$0.00 |
/wk |
|
|
Child Care |
From STEP 5.3 |
|
|
+ |
$0.00 |
/wk |
|
|
Benefits 1 |
From STEP 5.4 |
|
|
+ |
$0.00 |
/wk |
|
|
Benefits 2 |
From STEP 5.5 |
|
|
+ |
$0.00 |
/wk |
|
|
|
TOTAL Benefits |
Sum of all the above |
|
|
= |
$28.85 |
/wk |
|
|
|
|
|
|
|
|
|
|
| 7.4 |
PTO Costs |
TOTAL PTO Costs |
From STEP 6.6 |
|
|
= |
$18.89 |
/wk |
|
|
|
|
|
|
|
|
|
|
| 7.5 |
TOTAL |
TOTAL Costs (no WC) |
Earnings, Taxes, Benefits & PTO |
|
|
= |
$491.14 |
/wk |
|
|
|
|
|
|
|
|
|
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|
|
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|
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|
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|
|
| STEP 8 CALCULATE TOTAL COST and COST per HOUR |
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|
|
| 8.2 |
General Labor |
TOTAL All Other Costs |
From STEP 7.5 |
|
|
|
$491.14 |
/wk |
|
|
WC Costs |
From STEP 4.2 |
|
|
+ |
$77.90 |
/wk |
|
|
|
TOTAL All Payroll Costs |
Earnings, Taxes, WC, Benefits & PTO |
|
|
= |
$569.04 |
/wk |
|
|
TOTAL Hours |
From STEP 1.1 |
|
|
÷ |
40.00 |
hrs |
|
|
|
COST per hour |
For General Labor |
|
|
= |
$14.23 |
avg |
|
|
|
|
|
|
|
|
|
|
| 8.3 |
Framing Carpentry |
TOTAL All Other Costs |
From STEP 7.5 |
|
|
|
$491.14 |
/wk |
|
|
WC Costs |
From STEP 4.3 |
|
|
+ |
$123.50 |
/wk |
|
|
|
TOTAL All Payroll Costs |
Earnings, Taxes, WC, Benefits & PTO |
|
|
= |
$614.64 |
/wk |
|
|
TOTAL Hours |
From STEP 1.1 |
|
|
÷ |
40.00 |
hrs |
|
|
|
COST per hour |
For Framing Carpentry |
|
|
= |
$15.37 |
avg |
|
|
|
|
|
|
|
|
|
|
| 8.4 |
Finish Carpentry |
TOTAL All Other Costs |
From STEP 7.5 |
|
|
|
$491.14 |
/wk |
|
|
WC Costs |
From STEP 4.4 |
|
|
+ |
$74.10 |
/wk |
|
|
|
TOTAL All Payroll Costs |
Earnings, Taxes, WC, Benefits & PTO |
|
|
= |
$565.24 |
/wk |
|
|
TOTAL Hours |
From STEP 1.1 |
|
|
÷ |
40.00 |
hrs |
|
|
|
COST per hour |
For Finish Carpentry |
|
|
= |
$14.13 |
avg |
|
|
|
|
|
|
|
|
|
|
| 8.5 |
Supervision |
TOTAL All Other Costs |
From STEP 7.5 |
|
|
|
$491.14 |
/wk |
|
|
WC Costs |
From STEP 4.5 |
|
|
+ |
$33.82 |
/wk |
|
|
|
TOTAL All Payroll Costs |
Earnings, Taxes, WC, Benefits & PTO |
|
|
= |
$524.96 |
/wk |
|
|
TOTAL Hours |
From STEP 1.1 |
|
|
÷ |
40.00 |
hrs |
|
|
|
COST per hour |
For Superintendents |
|
|
= |
$13.12 |
avg |
|
|
|
|
|
|
|
|
|
|
| 8.6 |
Office / Clerical |
TOTAL All Other Costs |
From STEP 7.5 |
|
|
|
$491.14 |
/wk |
|
|
WC Costs |
From STEP 4.6 |
|
|
+ |
$4.56 |
/wk |
|
|
|
TOTAL All Payroll Costs |
Earnings, Taxes, WC, Benefits & PTO |
|
|
= |
$495.70 |
/wk |
|
|
TOTAL Hours |
From STEP 1.1 |
|
|
÷ |
40.00 |
hrs |
|
|
|
COST per hour |
For Office / Clerical work |
|
|
= |
$12.39 |
avg |
|
|
|
|
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| STEP 9 SUMMARY |
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| 9.1 |
Employee Earnings |
From STEP 2.4 |
|
|
= |
$400.00 |
/wk |
|
|
|
|
|
|
|
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|
|
| 9.3 |
General Labor |
Avg Cost per Hour |
From STEP 8.2 |
|
|
= |
$14.23 |
/hr |
|
|
|
|
|
|
|
|
|
|
| 9.4 |
Frame Carpentry |
Avg Cost per Hour |
From STEP 8.3 |
|
|
= |
$15.37 |
/hr |
|
|
|
|
|
|
|
|
|
|
| 9.5 |
Finish Carpentry |
Avg Cost per Hour |
From STEP 8.4 |
|
|
= |
$14.13 |
/hr |
|
|
|
|
|
|
|
|
|
|
| 9.6 |
Supervision |
Avg Cost per Hour |
From STEP 8.5 |
|
|
= |
$13.12 |
/hr |
|
|
|
|
|
|
|
|
|
|
| 9.7 |
Office/Clerical |
Avg Cost per Hour |
From STEP 8.6 |
|
|
= |
$12.39 |
/hr |
|
|
|
|
|
|
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| STEP 10 FOLLOW UP |
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| At this point, you have established the employee's average hourly cost under both the WC by Employee |
| and the WC by Cost Code methods. You are now ready to utilize these average hourly costs to calculate |
| the costs of the individual time sheet entries, which will provide you with the figures to post your payroll |
|
| costs accurately. |
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Cost Calculations