Do The Math
In this comparison chart, which we call "Do The Math," the cost of a mid-level benefit representative employed by your company is compared with professional benefits administration services provided by Strategic HR.
|
Element (Monthly Cost)
|
Monthly Cost for a Mid-Level Benefit Rep1
|
Monthly Cost for Benefits Admin from Strategic HR2
|
Monthly Savings By Outsourcing to Strategic HR
|
| Salary |
$2,917 |
$4,000 |
($1,083) |
| Benefits |
$875 |
0 |
$875 |
| Vacation, Holiday, Sick Days |
$205 |
0 |
$205 |
| FICA |
$467 |
0 |
$467 |
| Federal Unemployment Insurance |
$23 |
0 |
$23 |
| State Unemployment Insurance |
$102 |
0 |
$102 |
| Workers’ Compensation |
$61 |
0 |
$61 |
| Overhead |
$583 |
0 |
$583 |
| Training/Seminars |
$50 |
0 |
$50 |
| Software/System Costs |
$500 |
0 |
$500 |
| TOTAL COST AND SAVINGS |
$5,783 |
$4,000 |
$1,783
Savings/Mo.
$21,396
Per Year |
1Assumptions used for a mid-level benefit representative:
- Mid-level benefits representative = 1 to 2 years experience, annual salary of $35,000
- Vacation: 10 days; holidays: 3 days; sick days: five days.
Total: 18 days of a total of 262 possible days (7%).
- FICA based on 7.65% of salary.
- Federal unemployment insurance based on .008% of salary (to a maximum of $7,000).
- State unemployment insurance based on .035% of salary (to a maximum of $7,000).
- Benefits: Standard employer benefit package with PPO and dental insurance for employee and dependents, life, AD&D, LTD and 401(k) – based on 30% of salary.
- Overhead: based on 20% of salary.
- Training: Comprised of annual training, continuing education, Industry certifications and seminars totaling $600 per year.
2Assumptions used for a benefits administration services from Strategic HR:
- Cost based upon $10 per employee, per month – company size 400 employees. One-time set-up fee not included.
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