The “cost to you” is more than just the hourly wage when you pay your employee. It is the amount that will come out of your allocation and includes employer taxes and worker's compensation insurance costs that Morning Sun will pay on your behalf. The amount of those taxes and worker's compensation insurance is shown below:
| Total Employer Contributions: |
| FICA (Social Security) |
6.20% |
| Medicare |
1.45% |
| FUTA (Federal) |
0.60% |
| SUTA (State) |
2.50% |
| Worker's Compensation |
2.75% |
| TOTAL COST |
13.50% |
The amounts in the table below are examples only. You are free to pay your employees the hourly wage you want, as long as the employee is paid at least $9.00 per hour and is not paid more than the maximum rate allowed.
If the wage is not listed above just take the wage you want to pay and multiply the amount by 1.1350. This will give you the approximate "cost to you".
Simply fill in the blanks below to determine the "Cost to You."
| |
X |
1.1350 |
= |
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| Employee Wage |
|
Taxes & Worker's Comp |
|
Cost to You (always round up to the next penny) |