Suppose you are the human resource manager for a cellular phone company with 900 employeos....
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Suppose you are the human resource manager for a cellular phone company with 900 employeos. Top management has asked you to implement three additionsi fringe benefits that were negotiated with employee representatives and agreed upon by a majority of the employees. These inciude group term life insurance, a group legal services plan, and a weliness center. The life insurance is estimated to cost $390 per employee per quarter. The legal plan will cost $416 semiannually per employee. The company wit contribute 40 in to the ife insurance premium and 75% to the coat of the legal services plan. The employees will pay the balance through payroil deductions from their biweekly prychedis. In addition, they will be charged 41% of their gross earnings per paycheck for maintaining the weliness center. The company will pay the inibal cost of 1600,000 to build the center. This expense will be spread over 5 years. (a) What total amount should be deducted per paycheck for these new fringe benefits for an employee earning $62,400 per year? (b) What is the total annual cost of the new fringe benefits to the company
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