By Richard R. Hammar, J.D., LL.M., CPA
© Copyright 1992, 1998 by Church Law & Tax Report. All rights reserved. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Church Law & Tax Report, PO Box 1098, Matthews, NC 28106. Reference Code: m42 0592
The Bureau of Labor Statistics has released
a report on the cost of employee compensation. The average cost
of employee compensation to an employer is $17.27 per hour (as of
March of 1992). This includes wages of $12.33 per hour (71.4% of
total pay) and employee benefits of $4.94 per hour (28.6% of total
pay). Of course, average hourly compensation costs vary depending
on the type of employment, the size of the employer, and the region
of the country. Average compensation in private industry was
highest for "white-collar" jobs ($18.95), followed by "blue-collar"
jobs ($15.88) and "service sector" jobs ($8.43). These amounts
varied widely within each category depending on the type of job
involved. On the other hand, employee benefit costs were higher for
blue-collar workers (32.3% of compensation cost) than for
white-collar workers (26.6%) and service workers (24.3%). Average
compensation increased with the size of the employer. The average
cost of employee compensation was $13.95 per hour for employers
with fewer than 100 employees, $15.03 for employers with 100 to 499
employees, and $21.23 for employers with 500 or more employees.
Average hourly compensation costs were higher in the Northeast
($18.84) than the South ($14.52). The highest hourly compensation
costs were for state and local government employees. The average
hourly compensation cost for these workers is $23.49 (compared with
$17.27 for private sector employees).