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Question: Set up a worksheet to calculate the annual cost, the monthly cost, and the burden markup of a salaried employee. The spreadsheet should allow you to enter the annual salary, annual bonus ($/year), monthly allowances ($/month), the amount of employee expenses that are not subject to social security and Medicare taxes, social security percentage rate and limit, Medicare percentage rate, FUTA percentage rate and limit, SUTA percentage rate and limit, workers' compensation insurance rate ($/$100), general liability percentage rate, 401(k) matching rate and limit, monthly health insurance payment, monthly union payments, and other monthly benefits. Assume the employee takes full advantage of the 401(k) benefit. Check your answer against Problem.
Problem: Determine the annual cost, monthly cost, and burden markup for a salaried employee given the following information. Assume the employee takes full advantage of the 401(k) benefit.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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