DR SOLOMON only - Not interested in other!

Original work, unique (400-500 words in length).... 1 resource as well needed

The College Credit Card Services has a significant increase in business each spring due to a

large increase in new applicants from graduating college students. Subsequently, each spring

40 temporary workers are hired for a 12-week period, working 40 hours per week at $10 per

hour and then they are laid off. College’s permanent employment total is 350 workers. Because

of these yearly layoffs, College’s state unemployment merit tax rate is 9%. If the number of

layoffs could be reduced, the merit tax rate could be reduced to 4.1%. As the payroll specialist

for College, you have been asked to evaluate the following and determine the pros/cons of each

decision:

a. Should College stop hiring temporary employees and ask its full-time workers to work overtime to

handle the extra load?

b. Should College get its temporary employees from a temporary employment agency and therefore

not be subject to the extra taxes?