Additives Used Taxpayers’ Transportation Accountability Act Calculation of MnDOT Labor and Overhead Cost FY ‘11 Labor Cost Group Calculation or Percentage Used Types of Costs Included Salaries Estimated hours by employee job class and work activity per project manager, multiplied by salary rate. Average salary rate per hour for all MnDOT employees at each employee job class. Payroll Taxes & Benefits Average of all MnDOT employees at each job class – ranges from 20% to 40% of salaries. FICA – Employer portion of social security taxes. INSURANCE – Employer portion of group health insurance. RETIREMENT – Employer portion of retirement benefit costs. Indirect Labor Additive 21.7% - Audited labor additive rate. WORKERS COMP LEAVE TIME – absences due to work-related injury or illness. VACATION – Absences due to vacation time taken, donated or transferred to deferred compensation. HOLIDAY – Absences due to designated holidays and use of floating holiday. SICK – Absences due to employee sickness, dependent illness or medical/dental appointments. PREMIUM TIME – Cost of overtime premium (the half-time portion of time-and-a-half). MISCELLANEOUS BENEFITS AND LEAVES – Cost of retroactive salary adjustments, achievement awards, grievance awards, first day of injury, death benefit, absences due to voting, jury duty, military leave, snow days, etc. WORKERS COMPENSATION – Cost of workers compensation, e.g. medical invoices. GROUP INSURANCE – State’s cost of group insurance.
UNEMPLOYMENT – State’s cost of unemployment compensation premiums. Indirect Overhead Additive 24.2% - Overhead additive rate calculated to include expenses from MnDOT overhead organizations such as: Commissioner’s Office Office of Finance Employee and Corporate Services Division Modal Planning and Program Mgmt. Division FULL TIME AND PART TIME – Salaries, FICA, group insurance and retirement expenses for full-time and part-time employees OVERTIME PAY – Overtime salary and FICA PREMIUM PAY – Premium salary (the half-time portion of and FICA OTHER BENEFITS – Separation expense, relocation expense, unemployment comp, workers comp, etc. for “overhead” employees. SPACE RENTAL, MAINTENANCE AND UTILITY – Facilities space rental, misc. rental, utility services and building maintenance services (janitorial, mowing, security, etc.) REPAIRS, ALTERATIONS AND MAINTENANCE – Repairs and alterations to equipment, furniture and buildings, and maintenance contracts. PRINTING AND ADVERTISING PROF/TECH SERVICES OUTSIDE VENDORS – Primarily in information resources and facilities COMPUTER AND SYSTEMS SERVICES – Mainframe processing, software license fees, software purchases and maintenance and system access fees. COMMUNICATIONS TRAVEL & SUBSISTENCE EMPLOYEE DEVELOPMENT SUPPLIES – Primarily office supplies. EQUIPMENT – Primarily Information Resources and Facilities equipment. BUILDINGS AND LAND IMPROVEMENTS
Estimated non-productive hours in first six months of bringing on a new employee: 400 hours for most employee classes, 120 hours for new employees. Multiplied by average salary rate per hour Total New Employee Additive per Employee: $16,000 - $22,000 Non-department training, new equipment, employee set-up costs Standard non-productive fraction of month: 1: 75% Month 2-3: 50% Month 4-6: 25% Total = 2.50 months or 400 hours non-productivity. Construction Delay Inflation Factor Factor equals: Estimated construction cost X Length of Delay X Inflation Rate Most recent estimated cost of project construction, per project manager Inflation factor per Office Capital Programs and Performance Measures. Use same rate each time.