The Effect Of Cost Per Hour Rate Between State Of Illinois, Usa And Ontario, Canada

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INTRODUCTION: In this report we are analyzing and comparing cost per hour rate between the State of Illinois, USA and Ontario, Canada. Where we have to find the cost or a number, to determine what market is better to open a new factory in either Illinois or Ontario.
BACKGROUND: Illinois is one of the nation 's manufacturing leaders, boasting annual value added productivity by manufacturing of over $107 billion in 2006. As of 2011, Illinois is ranked as the 4th most productive manufacturing state in the country, behind California, Texas, and Ohio. About three-quarters of the state 's manufacturers are located in the Northeastern Opportunity Return Region, with 38 percent of Illinois ' approximately 18,900 manufacturing plants located in
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The dollar conversion rate of 1 US dollar to 1 Canadian dollar is $1.25 on March 5, 2015. The quantitative analysis for Illinois and Ontario is here under: ILLINOIS, USA ONTARIO, CANADA
Conversion Rate US-CA $ 1.00 $ 1.25
Minimum Wage $ 8.25 $ 11.00
Average hours per week 40 Hours 40 Hours
Average working weeks in a year 52 52
Yearly gross wage (per hours x 40 x 52) US$17,160 CAN$22,880
Yearly gross wage of Illinois State into Canadian dollars is (17,160 x 1.25) CAN$21,450 ---
In USA, according to the U.S. Social Security Administration, An employer is required to contribute an amount equal to 6.2 percent of employee wages for Social Security and 1.45 percent for Medicare (http://smallbusiness.chron.com/payroll-tax-employer-contribution-40863.html)IN Employer’s contribution in taxes in the State of Illinois, USA is: Employer’s contribution of Social Security tax 6.2% 17160 $1063.92
Employer’s contribution of Medicare tax 1.45%x 17160 $248.82
State unemployment tax (New employer’s use 3.95% for 2014 and 3.75% for 2015) 3.75% x 12,960 (base) $486.00 Federal unemployment taxes (6%-5.4%) 0.6% x $7,000 (base) $42.00
Total contribution of an employer in the State of Illinois is $ 1,840.74. When we add the gross wage and taxes for the year
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