PUB510 Homework Assignment 1(Adapted from Mikesell, p. 144)
This Table shows the staffing and pay rates of the Marshall City Fire Department.
Personnel
Employee Grade
Chief
Shift Commander
Firefighter 1
Firefighter 2
Clerical (part-time)
Number in Grade
1
3
12
26
3
Salary
$125,000
90,000
49,000
35,000
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.
Instructions:
Using the accompanying Excel template, estimate the city’s full cost of the department labor
during the fiscal year, assuming no change in staffing.