Laserfiche WebLink
• • <br /> ATTACHMENT K <br /> CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS <br /> Table 1 <br /> Adjustment to Proposed Costs for Annual Adjustment to Contractor's <br /> Cost Rate Year One (2011) Contractor's Compensation for Rate Years <br /> Compensation Two — Ten (2012 - 2020) <br /> C. • Payroll tax expense will be • Same method as prior year. <br /> calculated based on the following <br /> Payroll taxes effective tax rates in Contractor's <br /> Proposal: <br /> • 8.32% for Direct Labor; and, <br /> • 8.15% for Indirect Labor. <br /> • The effective tax rate will be <br /> applied to the adjusted wages for <br /> direct or indirect labor to calculate <br /> payroll tax expense. When the <br /> Federal and /or State employer <br /> payroll tax rates or limits are <br /> changed, Contractor will submit to <br /> SBWMA a new effective payroll tax <br /> rate for review and approval. If <br /> approved, the new rates will be <br /> used to calculate payroll tax <br /> expense for the Rate Year affected <br /> by the change(s). <br /> D. • Step One: • Adjust to reflect one (1) year <br /> Initially adjust Attachment N 2008 average index change in the U.S. <br /> Workers costs using the U.S. Department of Department of Labor, Bureau of <br /> compensation, direct Labor, Bureau of Labor Statistics, Labor Statistics, Private Industry <br /> and indirect Private Industry Employment Cost Employment Cost Index for Total <br /> Index for Total All Workers (not All Workers (not seasonally <br /> seasonally adjusted, total benefits, adjusted, total benefits, series no. <br /> series no. CIU2030000000000A). CIU2030000000000A). Average <br /> Average index change between index change between index for <br /> Index for May 2008 and April 2010 May of prior year to April of <br /> (i.e., twenty four (24) months). current year (i.e., twelve (12) <br /> months). <br /> • Step Two: <br /> In order to reflect 2011 base costs, • For Rate Year Three (2013) only, <br /> adjust costs using the U.S. service level change adjustment <br /> Department of Labor, Bureau of to workers compensation costs for <br /> Labor Statistics, Private Industry direct labor based on one - hundred <br /> Employment Cost Index for Total percent (100 %) of the service <br /> All Workers (not seasonally level changes and for worker <br /> adjusted, total benefits, series no. compensation costs for indirect <br /> CIU2030000000000A). Average labor based on sixty -five percent <br /> index change between index for (65 %) of service level changes as <br /> May 2009 and April 2010 (i.e., described in Table 2. <br /> Collection Services Franchise Agreement with Recology San Mateo County Attachment K <br /> City of Redwood City Contractor's Compensation and Rate Setting Process <br /> Page 9 of 26 <br />