The health information managemnet 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?
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$13.50 x 2080 = 28080
$24/100 x 28080= $6739.2
$28080+$6739.2 = $34, 819.2
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To calculate the total budget for the employee's salary and fringe benefits, we'll follow these steps:
Step 1: Calculate the annual salary
The new graduate is being paid $13.50 per hour and works full-time, which is 2,080 hours per year. Multiply the hourly rate by the number of hours worked in a year:
$13.50/hour x 2,080 hours/year = $28,080/year
So, the new graduate's annual salary is $28,080.
Step 2: Calculate the fringe benefits
The cost for a full-time employee's fringe benefits is 24 percent of the employee's salary. Multiply the annual salary by the fringe benefits percentage:
$28,080 x 0.24 = $6,739.20
So, the cost for fringe benefits is $6,739.20.
Step 3: Calculate the total budget
Finally, add the salary and fringe benefits together to get the total budget:
$28,080 + $6,739.20 = $34,819.20
Therefore, the supervisor must budget $34,819.20 for the employee's salary and fringe benefits.