What Is the Salary of an Investment Banker by ebj11165


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									                                  Fill-in-the-Blank Notes
                                  Chapter 13- Personnel
Section 13-1: Hiring New Employees

1) ___________________ is the act of soliciting ___________________ people to work for your

2) The formula for total recruiting cost is:

3) Copy down the work and answers for example 1: Talbot Manufacturing Company is searching
for a person to head its production department. The personnel department placed advertisements for
a total cost of $6,495 and employed Empire Executive Search Company to locate candidates.
Empire recommended Alice Welch, Tomas Valdez, and Cleveland Adams. Talbot paid the
candidates’ travel expenses for interviews.

       Alice Welch            Total travel expenses: $517
       Tomas Valdez           Total travel expenses: $735
       Cleveland Adams        Total travel expenses: $674

After the interviews, Talbot hired Cleveland Adams at the annual salary of $154,900. Talbot paid
these expenses to hire him:
                Moving expenses                                    $3,600
                Sale of home (real estate broker’s fee)            $9,470
                Empire’s fee (25% of Adam’s 1 year salary)         $38,725

What was the total expense of recruiting Cleveland Adams?

4) Example 2: A financial services firm searched and found a senior- level investment banker.
Advertising for the position totaled $12,500. The firm narrowed the search down to 3 finalists. It
spent $3,890 on interviewing expenses. It decided to hire Jane McNally. The firm paid $5,000 in
moving expenses and a 6 percent realtor’s fee on the selling price of her home. The home sold for
$348,000. What is the total recruiting cost?

Section 13-2: Administering Wages and Salaries

1) A ________________ ____________ is a table of wages or salaries used to compare various jobs
in a company.

2) A cost-of-living adjustment is a _____________ in your salary to help you keep up with


3) A merit increase is a raise to reward you for the ____________________ ___ __________

4) The formula for the New Salary is:

5) Copy down the work and answers for example 1: Elaine Taylor is a syste ms analyst, salary level
2 position (see Figure 13.1), for EPD Inc. The executive board of EPD voted to give all employees
a cost-of-living adjustment of 2.8%. In addition, Taylor was awarded a merit increase of 3.5% for
excellent work during the year. What will Taylor’s salary be for the coming year? See book!

6) Example 2: D’Marco Mullin is a computer operator, salary level 3, for EPD Inc.
He received a 2.8 percent cost-of-living adjustment and a merit increase of 4 percent.
What is Mullin’s new salary?

Section 13-3: Employee Benefits
1) List 4 of the many employee benefits your business may offer:

2) The total of the benefits may be figured as a ________________ of annual ________________

3) The formula of Rate of Benefits is:

4) Copy down the work and answers for example 1: The personnel department of Commercial
Credit Company is preparing annual reports on employee benefits. Tamika Rey’s total annual
benefits are what percent of her annual salary?

Tamika Rey Annual salary: $41,340 Weekly salary: $795
Vacation: 2 weeks @ $795/week             $1,590.00
Holiday: 8 days @ $159/day                $1,272.00
Health insurance: 12 months @ $162.50/mo  $1,950.00
Sick leave policy: 30 days @ $159/day     $4,770.00
Une mployme nt insurance: 4.6% × $41,340  $1,901.64
Social Security (FICA): 6.2% × $41,340    $2,563.08
Medicare 1.45% × $41,340                   $599.43
Total                                    $14,646.15

5) Example 2: Compute the rate of employee benefits based on annual gross pay for Tamika Rey
(from Example 1) if she now receives 3 weeks of vacation.
Everything else stays the same.

Section 13-4: Disability Ins urance

1) __________________ __________________ pays benefits to individuals who must miss work
because of

_______________ or ______________.

2) Short-term disability is covered by

3) Long-term disability is covered by

4) The formula for Annual Disability Benefit is:

5) Copy down the work and answers for example 1: Alicia Walmsley had been working at Northern
State University for 21 years when she became permanently disabled and could not continue to
work. She was 52 years old and had planned to retire in 13 years at Northern State’s normal
retirement age of 65. Her final salary was $38,740. Northern State’s rate of benefits is 2%. What
is her monthly disability benefit?

Section 13-5: Worke rs Compensation and Unemployment Insurance

1) Worke r’s compensation insurance covers employees’ ___________________
___________________ and

_________ _____________ if they’re __________ on the job.

2) Premiums for worker’s compensation insurance are paid to the _____________ by the

3) Give an example of a business with high worker’s compensation premiums:

 Give an example of a business with low worker’s compensation premiums:

4) The formula for Workers Compensation Insurance Pre mium is:

5) Copy down the work and answers for example 1: The base rate for workers compensation
insurance for underground coal mining in one state is $19.89 per $100 paid to employees. The total
monthly payroll for a small underground mine is $76,800. What is the monthly premium for
workers compensation insurance?

6) ___________________________ _______________________ provides financial aid to qualified
persons who,

through no fault of ___________ _________, become unemployed.
7) The formula for State Tax Amount is:

8) The formula for Fede ral Tax Rate is:

9) The formula for Fede ral Tax Amount is:

10) Copy down the work and answers for example 2: A sewer contractor has 4 employees. The
firm has some unemployment during the year, especially during the winter months, and must pay a
state unemployeement tax (SUTA) of 5.4%. That leaves 0.8% (6.2% - 5.4%) for the federal
unemployment tax (FUTA). Compute the federal and state unemployment tax on the annual wage
given below.

 Employee              Annual Wage             Amount Taxed       Federal Tax (0.8%)    Sate Tax (5.4%)

 Art Webster           $24,750                 $7,000

Section 13-6: Travel Expenses

1) Travel expenses usually include _____________________, _____________________, and

2) The formula for Total Travel Expenses is:

3) Copy down the work and answers for example 1: The accounting department of Diversified Sales
Company will reimburse Roger Martin for attending a 3-day marketing conference. He drove to the
conference, so Diversified will pay him $0.35 per mile. Martin’s expenses include the following:
                   Expense Category                     Amount

                   Hotel (9/6)                          $174.50
                   Hotel (9/7)                          174.50
                   Tolls                                  7.20

                   Conference registration              95.00
                   Meals (9/6)                          29.12
                    Meals (9/7)                               48.20

                    Meals (9/8)                               19.37
                    Mileage                                   (240 miles round trip)

What is the total cost of sending Martin to the conference?

Section 13-7: Employee Training

1) Expenses for training during regular work hours include the cost of ___________________

2) The formula for Total Training Costs is:

3) Copy down the work and answers for example 1: Acme Manufacturing Company chose 8
employees to attend a training program in computer assisted manufacturing (CAM) held within the
company. The employees were paid their regular wages while attending the 2-day program. Their
combined wages amounted to $512 per day. The production control manager, who earns $168 per
day, was the course instructor. Refreshments were brought in twice a day at a cost of $45.70 per
day. Supplies and equipment for the program amounted to $35 per person. What was the total cost
for the training program?

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