TERMS & GLOSSARY CONTENTS


# of Vehicle

Vehicle Expenses: Vehicle number assigned by your company.


Accessories (Light bar & Decals(

Vehicle Expenses: Total cost of accessories for this vehicle.


Annual Maint. Cost

Vehicle Expenses: The cost of maintenance for this vehicle, annually.


Avg. Daily Miles

Vehicle Expenses: Number of miles, on average, a vehicle will be driven daily.


Avg. Price of a Gallon of Gas

Vehicle Expenses:  Local average price for a gallon of gas.


Built-In Overtime Hours

The number of overtime hours that are built into the contract. For example, if your contract is for 41 hours per week, you will have 1 hour of built-in overtime.


Cost of Risk

The amount of insurance that you are paying PER DOLLAR for each dollar that you spend in payroll for General Liability and Workers Compensation insurance. To get this number, contact your insurance carrier and ask them “How much are you paying per dollar of payroll for General Liability and Workers Compensation?” Their response will either be a percentage or something like $5 for every $100. In that case, your percentage would be 5%.


Depreciable Life (Months)

Depreciable life is the period in time where the asset (uniforms & equipment) will no longer be viable and have to be replaced.


Direct Billed

Passthrough cost that is directly billed to your client.


Emergency Bill Rate

Commonly used for emergencies. Can either be all inclusive or per position.


FICA

The Federal Insurance Contributions Act (FICA) is a federal law that requires employers to withhold three different types of employment taxes from their employees’ paychecks. These taxes include Social Security taxes, Medicare taxes, and employers must withhold a Medicare surtax for certain high-paid employees.


FICA contributions are mandatory taxes, with rates set annually—although not necessarily changed annually. The amount of the FICA payment depends on the income of the employee: the higher the income, the higher the FICA payment.


The FICA Rate for 2022 is 6.20%.


FUTA

The Federal Unemployment Tax Act (FUTA), combined with state unemployment systems, provides for payments of unemployment compensation to workers who have lost their jobs. Most employers pay both a Federal and a state unemployment tax. Only the employer pays FUTA tax; it is not deducted from the employee's wages.


As of September 2020, The FUTA tax rate is 6.0%. The tax applies to the first $7,000 you paid to each employee as wages during the year. The $7,000 is often referred to as the federal or FUTA wage base.


Holiday Hours

The total number of holiday hours allocated for for this contract.


Hourly Wage / Annual Salary

The hourly wage your officers will be paid for this contract.


Insurance (Per Month)

Vehicle Expenses:  Cost of the insurance premium on this vehicle, per month.


Loan Term (Months)

Vehicle Expenses:  The number of months you will be financing the vehicle.


Make

Vehicle Expenses: Company that manufactures the vehicle (Nissan, Ford, GMC, Kia, etc.)


Miles Per Gallon

Vehicle Expenses:  Number of miles, on average, the vehicle will get, per gallon.


Model

Vehicle Expenses: Specific vehicle model.


Number of Full Time Employees

Calculated from the total number of hours for the personnel type.


Other Fees

Vehicle Expenses: Total cost of Other fees associated with this vehicle.


Oil, tires, fluids

Vehicle Expenses: Variable cost / estimated expense for Oil, tires, and fluids for this vehicle.


Premium Bill Rate

Commonly used for Overtime. Can either be all inclusive or per position.


Profit Margin

The % of profit that you would like to make from this contract.


Sales Price

Vehicle Expenses: Price of the vehicle before taxes, financing, and other fees.


Sales Tax

 A sales tax is a direct tax on products that many states and local governments impose when you purchase goods and services. The amount of tax you pay is typically figured as a percentage of the sale price. This is the tax that you pay when you buy groceries, but some states do not charge a sales tax.


Please consult your CPA if you do not know what your state sales tax is.


Sick Time Hours

The total number of hours that you will allocate to sick pay for this contract.


Straight Bill Rate

The wighted bill rate for this contract. Can either be all inclusive or per position.


SUTA/SUI

The State Unemployment Tax Act, known as SUTA, is a payroll tax employers are required to pay on behalf of their employees to their state unemployment fund. Some states require that both the employer and employee pay SUTA taxes. These contributions provide monetary support to displaced workers.


While it is generally known as the State Unemployment Tax Act, some states have different names for it such as State Unemployment Insurance (SUI) or Reemployment Tax.


Contact your state unemployment office for employers to get your company’s SUTA rate.


Title, Registration, & Fees

Vehicle Expenses: Total cost of Title, Registration, & Fees for this vehicle.


Total Est. HPW

Vehicle Expenses: The total estimated number of hours this vehicle will be used per week.


Total Hours

The total number of hours that the officer will be working per week for this contract.


Total Loan Cost

Vehicle Expenses: Calculation of Total Loan Cost from Loan Payment and Sales Tax.


Total Loan + Ins. Cost

Vehicle Expenses: Calculation of Total Loan Cost from Loan Payment, Sales Tax, and Insurance.


Training Hours

The total number of hours required/provided to train officers for this contract.


Training Wage

How much will you pay the officer per hour during orientation/training for this contract.


Turnover %

This is an estimate of what the turnover for this position will be. If this is a lower paying position turnover could be as high as 100%. If it is a supervisory position or has a higher pay rate turnover maybe lower. If you are unsure as to what this number is for your organization, start high 50% - 75%.


Vacation Hours

The total number of vacation hours allocated for for this contract.


Year

Vehicle Expenses: Year of the specific make / model vehicle.