Fridge Benefit Cost

On my edition of the book, Question 3 on p. 144 page gives you a scenario for Marshall City Fire Department. Answer the question and provide the answers. You can do this in a Spreadsheet (Excel) or list the answers in a Word document. This is a good opportunity to identify fringe benefit costs.  

I am looking for numbers in the following categories:

a. Total Salaries

b. Social Security

c. Medicare

d. Health Insurance Annual cost

e. Pension System Employer Cost 

f. Uniform Allowance

g. Grand Total of all costs

his table shows the staffing and pay rates of the Marshall City Fire Department:

Employee Grade

Number in Grade

Salary (in $)

Chief  1 $125,000

Shift commander 3 $90,000

Firefighter 1 12 $49,000

Firefighter 2 26 $35,000

Clerical (part-time) 3 $15,000

The city is part of the federal Social Security system. The city and the employee

each  pay  Social  Security  payroll  taxes  of  6.2  percent  of  all  salary  paid  up  to 

$118,500  per  employee  to  finance  federal  retirement  and  disability  insurance 

and 1.45 percent of all salary paid to finance Medicare. The city pays a portion

of  the  cost  of  health  insurance  for  each  full-time  employee,  an  amount  equal 

to $180 per month. Employees are part of a pension system financed by a city

payment of 20 percent of the employee’s salary and an employee payment of

5 percent of the employee’s salary. Full-time employees receive an allowance

for uniforms of $750 per year.

Estimate the city’s full cost of fire department labor during the fiscal year,

assuming no change in staffing. Separate that cost into salary and fringe-benefit

components.