Employee Benefits

What are they?What do they ‘cost’?

LEGALLY MANDATED

• Social Security & Medicare

• Unemployment (state & federal)• Workers Compensation

“FRINGE” BENEFITS

• Paid vacation• Paid leave• Insurance

Life – Health - Dental• Pension / Profit Sharing• Bonuses• Other???

Other

• Clothing• Apartment• Auto• Cell phone• Association membership• Continuing education• ???

Cost of benefits

FICA

• Social Security 6.2% (up to $97,500 in 2007)

• Medicare1.45% (unlimited in 2006)

Employer match costs 7.65% of payroll

State

• Unemployment (federal & state)• Disability• Workforce Development (NJ)

• 2-6% of payroll

• New in 2009 (NJ) Family Leave

NJ Family Leave

• For 20090.09% employee (& employer match)1st $28,900 of income

• Moves to 0.12% in 2010

Benefits

• Health insurance$200 - $1,000 / month

• Life Insurance$250+ annually

• Pension / profit sharing2-3% and up

Total cost? 30-40% per employee

List of Common ‘Benefits’ – 2005

• Paid vacation 93%• Health insurance 88%• Paid sick leave 78%• Bonus 65%• Pension plan / 401K 66%• Dental insurance 37%• Company car 28%• Tuition reimbursement 26%• Other 19%

NFDA 2005 survey

• Paid vacation 89%• Health insurance 82.1%• Paid sick leave 68.2%• Paid holidays 71.2%• Reimburse for non-covered 16.3%• Retirement plan 59%• Dental/vision care 35.6%• Con Ed reimburse 37.8%• Tuition reimbursement 11.7%

Minimum wage

• NJ / PA / DE $7.25

States with current higher minimum :CA, CT, MA, MI, OR, RI, VT, WA (& DC)

US minimum wages

• http://www.dol.gov.esa/

Citrin Cooperman - 2008Overall results (NJ/NY/PA/CT)

• Experienced licensees $69,300(15+ years)

• Newly licensed $35,500

• Experienced intern $29,700

Citrin Cooperman data (NJ only)

• Experienced licensees $77 – 80,000(15+ years)

• Newly licensed $46,100

• Experienced intern $30,700

Citrin Cooperman survey

• 76% NJ fh do fewer than 150 calls/yr

• 26% have 3 or more licensees

• 71% operate 1 location only

See Citrin Cooperman ppt

Salaries

• Starting FS = starting teacher??

NJ teachers

• Average starting salary ‘09-’10$46,396

• Range: $38,000 - $57,289

• Westfield – highest• Every county has at least 1 school district w/

an average at least $50K• ‘08-09 NJ had highest ave. starting in USA

2008-09 NJ Teachers’ Survey

Average$64,555

13 years experience

MCCC student expectations2010 Average starting

FT $48,283

PT $46,500

2010 (average hourly)wages

• 3rd Year FT $13.45(1 not paid)

• PT $14.76(5 – no FS job or did not report wages)

Central tendency - 2010

• Average $47,751• Median $45,000• Mode $40,000• Range $30,000 - $75,000

MCCC student expectations2009 Averages

FT $52,541

PT $47,450

Prep $47,500

2009 Student survey

• Expected Ave. starting $52,541

–RANGE $35,000 – 100,000–MEDIAN $50,000–MODE $40,000

2009 (average hourly)wages

• 3rd Year FT $13.90(3 not paid; 2 paid / job)

• PT $11.74(5 of 13 – no FS job)

• Prep $10.89