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Open Question: Estimate the city’s full cost of fire department labor during the 201X fiscal year, assuming no change in staf?
The following personnel information about the Marshal Fire Department for the fiscal year that begins January 1, 201X, is to be used to answer the questions below.
GradeNumberSalary
Chief1$115,000
Shift Commander4 75,000
Firefighter 121 45,000
Firefighter 225 35,000
Clerical (part-time) 3 22,500
The city is part of the federal Social Security system. For 201X the city and the employee each pay Social Security payroll taxes of 6.2 percent of all salary paid up to $105,000 per employee to finance federal retirement insurance. The city pays a portion of the cost of health insurance for each full-time employee, an amount equal to $300 per month. Employees are part of a pension system financed by a city payment of 15 percent of the employee’s salary and employee payment of 5 percent of the employee’s salary. Full-time employees receive an allowance for uniforms of $650 per year.
Estimate the city’s full cost of fire department labor during the 201X fiscal year, assuming no change in staffing. Break the total down into its components; provide the cost of each of the following:
a. salaries
b. social security
c. health insurance
d. pension system
e. uniform allowance
f. total cost
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