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Joanna Brown works for KRC Corp, as an HR Director, earning an annual salary of $150,000. She is paid on a semi-monthly basis (meaning 24 paychecks each year). She received a merit increase of 4% of her Salary on January 1, 2017 (4% of $150,000).
In addition to Joanna’s Base salary and merit increase, KRC, the employer, incur the following additional cost for Joanna’s benefits.
Health Insurance $12,000
Retirement Plan-401k $10,000
Vacation – 2 weeks (Calculate dollar value) Salary divide by 24 pay periods )
Life Insurance -$850
Vision Plan -$150
Dental Insurance-$2,500
Gym Membership -$350
Tuition Benefits-$10,000
Other Accommodation and Enhancement Benefits $5,500
Employee Assistant Program-$650.
Workers Compensation Benefits $450
Security Medicare Taxes- 1.45 of Salary
Social Security -6.2 % of the first $127,200 of salary
Social Security Rates
The Federal Insurance Contributions Act (FICA) is made up of two items, Social Security and Medicare taxes. For 2017, the Social Security tax rate is 6.2% on the first $127,200 wages paid. The Medicare tax rate is 1.45% on the first $200,000 and 2.35% above $200,000.
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