Question 1
Workings:
Beach Director
Annual salary = 47,000
- Social security payment
Payable up to $45,000
First 3 months = 312 × 45,000 × 7.51% = 844.875
Last 9 months from 1 January = 912 × 45,000 × 8% = 2,700.00
Total social security payment 3,544.875
- Health insurance = 1,250. Beach Director is entitled to full health insurance since the FTE is 1.
- Life insurance benefits
0.85% of annual salary
0.85% × 47,000 = 399.50
Assistant Beach Director
Annual salary = 35,000
- Social security payment
Payable up to $45,000
First 3 months = 312 × 35,000 × 7.51% = 657.125
Last 9 months from 1 January = 912 × 35,000 × 8% = 2,100.00
Total social security payment 2,757.125
- Health insurance = 1,250. Assistant Beach Director is entitled to full health insurance since the FTE is 1.
- Life insurance benefits
0.85% of annual salary
0.85% × 35,000
= 297.5
Beach Ranger
Annual salary = 20,000
- Social security payment
Payable up to $45,000
First 3 months = 312 × 20,000 × 7.51% = 375.5
Last 9 months from 1 January = 912 × 20,000 × 8% = 1,200.00
Total social security payment 1,575.5
- Health insurance
= health insurance for full-time employee/FTE
= 1,25010
= 125
- Life insurance benefits
0.85% of annual salary
0.85% × 20,000
= 170.0
Lifeguard
Annual salary = 12,000
- Social security payment
Payable up to $45,000
First 3 months rate (7.51%) not applicable since they are employed after January 1.
Last 9 months from 1 January = 12,000 × 8% = 960
- Health insurance
= health insurance for full-time employee/FTE
= 1,25012.5
= 100
- Life insurance benefits
0.85% of annual salary
0.85% × 12,000
= 102.0
Secretary II
Annual salary = 9,500
- Social security payment
Payable up to $45,000
First 3 months = 312 × 9,500 × 7.51% = 178.3625
Last 9 months from 1 January = 912 × 9,500 × 8% = 570.000
Total social security payment 748.3625
- Health insurance = 1,250. Secretary II is entitled to full health insurance since the FTE is 1.
- Life insurance benefits
0.85% of annual salary
0.85% × 9,500
= 80.75
Question 2
Cost of additional ranger effective from January 1
Annual salary (9mothns) 912 × 20,000 15,000.00
Social security payment 8% × 15,000 1,200.00
Health insurance 1,25010 125.00
Life insurance benefits 0.85% × 15,000 127.50
Total cost 16,452.50
