Question

1. Given the following information, determine the burdened hourly wage rate for a carpenter. Assume the carpenters take full advantage of the retirement benefit.

Wage rate - $23.00/hour

Hours worked - 45 hours/week for 30 weeks, and 40 hours per week for 20 weeks

Vacation, holidays, and sick leave – two weeks at 40 hours/week

Overtime – Time-and-a-half for any hours over 40 per week

Gas allowance - $150/month

Annual bonus - $300

Social Security – 6.2% on the first $106,800 of wages

Medicare – 1.45% of all wages

FUTA – 0.8% on the first $7,000 of wages

SUTA – 5.8% on the first $10,000 of wages

Worker’s compensation insurance - $12.25 per $100.00 of wages

General liability insurance – 0.55% of wages

Health insurance (company’s portion) - $450 per month per employee

Retirement - $0.50 per $1.00 contributed by the employee on 6% of the employee’s wages

Answer 1

• carpenter works 45 hrs per week for 30 weeks and 40 hrs per week for 20 weeks
• total working hours per Year =(45*30)+(40*20) =1350+800=2150 hrs per year
• Total working hours of carpenter=2150 hrs per year
• compensation for carpenter=$23 per hr
• total wage per year=23*2150=$49450 per Year
• Leaves of carpenter = 2 weeks at 40 hrs per week
• Total no of hours =2*40=80 hrs
• overtime done by carpenter= 150 hrs
• he done over time by Time-and-a-half for any hours over 40 per week it means that   he done 45hrs for week for 30 weeks which is clearly mentioned in above question.
• Hence extra 5 hrs must include in extra hrs.
• that is =5*30=150 hrs
• total available working hrs of carpenter=2150-80+150=2220 hrs per year
• that means =2220/12=185 hrs per month
• total amount per month received by carpenter is=185*23=$4255
• he got gas allowance =$150 per month means $1800 per year
• Annual bonus =$300 means $25 per Month
• amount received monthly by carpenter=(4255+150+25)=$4430
• medicare=1.45%=0.0145*4255=$61.69 per month
• FUTA he got for every 2 months
• FUTA For 2 Months=0.07*7000=$490 means $245 per month
• SUTA he got for every 3 months
• SUTA per 3 months=0.058*10000=$580 means $193.33 per month
• workers compensation insurance=$12.25 for $100
• compensation insurance for month=12.25*42.55=$517.56 per month
• Liability insurance=0.0055*4255=$23.04 per month
• health insurance=$450 per month
• retirement benefit  = 0.06*4255=$255.3
• Contribution amount=255.3/2=$127.65
• finally the total amount received by carpenter per month =(4430+61.69+517.56+23.04+450+193.33+245-127.65)=$5792.97
• Burdened amount per month=5792.97-4255=$1537.97
• Burdened amount per hour received by carpenter is=1099.64/160=$9.61