Payroll Charges

Maintenance salaries and costs for laboratories are estimated as 3% of the total capital of investment, ie 3% of 30 million dollars is 900,000. The figures for payroll charges calculated back to one kg of L-phenylalanine are given in Table 8.6. 

Payroll Charges This item includes workers compensation, social security premiums, unemployment taxes, paid vacations, holidays, and some part of health and dental insurance premiums. The figure has steadily declined from 1980 and now is 30 to 40 percent of operating labor plus supervision expenses. 

Payroll charges. These include paid vacations, pensions, group insurance premiums, disability pay, social security premiums, and unemployment taxes. Estimate these as 30 to 35% of the labor plus supervision expense. 

Payroll charges should cover such items as social security, vacations, pensions, and compensation insurance. They may be estimated as a percentage of labor plus supervision the usual range is from 12 to 20 per cent of the sum of these items. 

Payroll Charge Offsite, Utility Investment Repairs, Onsite Repairs, Offsite Supplies and Materials Depreciation Taxes, Insurance Life of project Income tax... 

Companies usually include in the charge for overhead the following items operating supphes, supervision, indirect payroll expenses, plant protection, plant office, general plant overhead, and control laboratory. This overhead charge is frequently taken as an equivalent percentage of the direc t labor cost. 

Plant-overhead costs are for hospital and medical services general plant maintenance and overhead safety services payroll overhead including pensions, vacation allowances, social security, and life insurance packaging, restaurant and recreation facilities, salvage services, control laboratories, property protection, plant superintendence, warehouse and storage facilities, and special employee benefits. These costs are similar to the basic fixed charges in that they do not vary widely with changes in production rate. 

A 70,000 ton/year, 22,000,000 plant was started up in 2001. Since then, it has been operating at capacity for an average of 7200 h/year. It is staffed by 25 full-time production workers ( 32/h), two maintenance workers ( 35/h), and four shift supervisors ( 39/h). All labor rates include payroll and plant overhead. The process consumes 530 kilowatts of electricity ( 0.045/kWh), 50,000 gal/h of water ( 0.15/thousand gal), and 8.75 tons/h of feedstock ( 0.78/lb). Maintenance materials are estimated as equivalent to maintenance labor. Royalties amount to 4.20 per ton of product. The property taxes, insurance, and administrative charges total 5.2% of the total capital investment. Find the direct and indirect annual costs for the plant. 

The plant overhead include management and payroll overhead that cam be related with the operating power OL, as well as safety and maintenance fees that can be related with the fixed-capital. For the first we may take 60% from the charges Involved in direct costs, while for the second 2.5% from fixed-capital. So we have approximately... 

In practice, this system does not work well. Project managers complain that there is usually little they can do about the costs, since these are dominated by the payroll costs of the staff, and nothing they can do aboirt the rates, since these were determined by the sales staff who carried out the initial negotiations. In addition, they usually have difficulty reconciling their records of the non-staff costs with those rrsed by the accounts department, because of uncertainty about which month a charge will be allocated to. 

The manual rating groups companies according to types of business classifications and charges a rate per 100 of pa3rroll. The cost per 100 of payroll varies dramatically. 

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