Benefit Selection Activity
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Apr 3, 2024
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Benefit Selection Activity
You are the HR Manager and you will be selecting the benefits for the company. It is a large Coffee Production company with 74 employees. You have an overall annual payroll budget of 4.5 million
dollars. The owner has suggested that benefits should be worth 17% of the annual payroll budget for everything. The owner is not willing to go over 4.5 million for all payroll and benefit related costs. Salary Bands
Grade Number of Staff
Salary
Total Salary
Grade 1
21
$ 30,000
$630,000
Grade2
23
$40,000
$920,000
Grade 3
15
$55,000
$825,000
Grade 4
9
$80,000
$720,000
Grade 5
4
$100,000
$400,000
Grade 6 2
$120,000
$240,000
$3,745,000
Part I
Then you will need to consider the Legally Required Benefits
Legally Required Benefits WCB Rate
= Mobile Equipment Operation Industry 40604, industry rate of $1.91 Canadian Pension Plan Maximum contributory earnings 2023 = $66,600
Contribution rate for 2023 = 5.95% (2.9% for EE and2.9% for ER) Maximum contribution for 2023= $3754.45
Employment Insurance Maximum insurable earnings for 2023 is $61,500
Employees contribute 1.63 of earnings to a maximum of $1,003.45
Employer contributes 2.28 of earnings to a maximum of $1403.43
Maximum benefit it $562.00 per week in 2019 for a maximum of 45 weeks.
Employer Sponsored Benefits
You have wonderful ideas of innovative new benefit plans for this group. Firstly you look at the demographics of your workforce. Males
67
Females
7
Ages
18-25
22
26-35
29
36-45
15
46-55
5
56-65
3
66-75
0
Family Coverage
38
Single Coverage 36
Total Number of Employees
74
Benefit Options – Monthly Premiums offered by the Benefit Provider Company “Wow Benefits”
Benefit
Family Premiums per month
Single Premiums per month
Employee cost share option Basic Life Insurance 1 X annual income
or
17.00
9.00
yes
Enhanced Life Insurance 2X annual income
22.00
13.00
yes
Optional items
Accidental Death and Dismemberment
12.00
7.00
Yes
Spousal Life Insurance 9.00
NA
Yes
Basic Health Benefits
or
72.00
65.00
Yes
Enhanced Health Benefits – semi-private 89.00
72.00
Yes
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Recommended textbooks for you
- Management, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub
Management, Loose-Leaf Version
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Publisher:South-Western College Pub