Template #4: Benefit Computation Worksheet #2: Helps budget planners think through the different types of obligatory and optional benefits as well as cafeteria plans and their costs and budget these for "employee" personnel costs (as outlined in Worksheet #1).  This data will help boards decide what benefit programs and policies it policies can afford to offer. Benefit Computation Worksheet #2*                 Not everyone working for a school or project is eligible for benefits.** Eligibility is determined in 4 ways:  1) IRS classification…is the person an "employee' or "independent contractor."  2) benefit provider guidelines …does the "employee" meet the provider's guidelines for eligibility, 3) employer policy … does your Board want to participate in certain programs, e.g. teacher retirement or cafeteria programs?  Has your board decided employe eligibility eg. A policy that one must work 30-,32-, or 35- hours to receive benefits? 4) employee choice…  for programs that are not mandatory, will the employee choose the benefit? Once you have determined your board policies, benefit provider guidelines, program costs, and employee classifications, you are ready to estimate benefit costs.  Typical benefits public schools pay are listed.  For many benefits, the employer pays a fixed % per dollar of payroll. This is why payroll is used to estimate.  Cafeteria plans offer choices but the employer determines a fixed amount it can afford per person…                 Estimates Per Year for Employee Benefit Costs:  3 Year Planning                         Year 1 Year 2 Year 3     Benefit Categories 1000 Instructional personnel 2000 Administrative Personnel 1000 Instructional Personnel. 2000 Administrative Personnel Instructional Personnel Administrative Personnel                       Employer Contribution & Expense                 Teacher Retirement (optional)                 Medicare (mandatory)                 Social Security (optional)                 Health                 Dental/Vision                 Private Retirement                 Cafeteria Allowance Per Full-Time Employee x # of Full time Employees                 Other Ch.125 Allowed Expenses                 Estimate of total payroll benefits per year per category of personnel $ $ $ $ $ $                     *For budget planning purposes, "benefit" means costs that will be posted to benefit accounting lines (1000-200 and 2000-200) and directly related to "employees" of the school. **Consultants under contract do not receive "employer" or "employee" benefits and so "independent consultants" are not eligible for expenditures under these accounting categories.