The HIM coding supervisor agrees to pay a new graduate $13.50 per hour. This is a full-time coding position at 2,080 hours per year. The cost for a full-time employee's fringe benefits is 24 percent of the employee's salary. How much must the supervisor budget for the employee's salary and fringe benefits?
13.50 * 2,080 * 1.24 = $_______
To calculate the budget for the employee's salary and fringe benefits, follow these steps:
1. Calculate the annual salary of the new graduate by multiplying the hourly rate by the number of hours worked per year:
Salary = Hourly Rate * Hours per Year
Salary = $13.50 * 2,080
Salary = $28,080
2. Calculate the cost for fringe benefits by multiplying the salary by the fringe benefit rate (24%):
Fringe Benefit Cost = Salary * Fringe Benefit Rate
Fringe Benefit Cost = $28,080 * 0.24
Fringe Benefit Cost = $6,739.20
3. Add the salary and fringe benefit cost together to get the total budget for the employee:
Total Budget = Salary + Fringe Benefit Cost
Total Budget = $28,080 + $6,739.20
Total Budget = $34,819.20
Therefore, the supervisor must budget $34,819.20 for the employee's salary and fringe benefits.