Studdy AI Logo
Math

QuestionThe employee pays 20% of \$2,470 annually. What is the biweekly deduction from their paycheck? Biweekly Insurance Cost \$[?]

Studdy Solution

STEP 1

Assumptions1. The total health insurance cost is $,470 per year. The employer pays80% of the total cost3. The remaining cost is covered by the employee4. The employee's contribution is divided equally among their biweekly paychecks

STEP 2

First, we need to find out how much the employer is paying. We can do this by multiplying the total cost by the employer's contribution rate.
Employer contribution=Total costtimesEmployer contribution rateEmployer\, contribution = Total\, cost \\times Employer\, contribution\, rate

STEP 3

Now, plug in the given values for the total cost and the employer's contribution rate to calculate the employer's contribution.
Employer contribution=$2,470times80%Employer\, contribution = \$2,470 \\times80\%

STEP 4

Convert the percentage to a decimal value.
80%=0.880\% =0.8Employer contribution=$2,470times0.8Employer\, contribution = \$2,470 \\times0.8

STEP 5

Calculate the employer's contribution.
Employer contribution=$2,470times0.8=$1,976Employer\, contribution = \$2,470 \\times0.8 = \$1,976

STEP 6

Now that we have the employer's contribution, we can find out how much the employee has to pay. This is the total cost minus the employer's contribution.
Employee contribution=Total cost−Employer contributionEmployee\, contribution = Total\, cost - Employer\, contribution

STEP 7

Plug in the values for the total cost and the employer's contribution to calculate the employee's contribution.
Employee contribution=$2,470−$1,976Employee\, contribution = \$2,470 - \$1,976

STEP 8

Calculate the employee's contribution.
Employee contribution=$2,470−$1,976=$494Employee\, contribution = \$2,470 - \$1,976 = \$494

STEP 9

Now that we have the employee's annual contribution, we can divide this by the number of biweekly pay periods in a year (26) to find the amount taken from each paycheck.
Biweekly insurance cost=Employee contribution/Number of biweekly pay periodsBiweekly\, insurance\, cost = Employee\, contribution / Number\, of\, biweekly\, pay\, periods

STEP 10

Plug in the values for the employee's contribution and the number of biweekly pay periods to calculate the biweekly insurance cost.
Biweekly insurance cost=$494/26Biweekly\, insurance\, cost = \$494 /26

STEP 11

Calculate the biweekly insurance cost.
Biweekly insurance cost=$494/26=$19Biweekly\, insurance\, cost = \$494 /26 = \$19The amount taken from the employee's biweekly paycheck for health insurance is $19.

Was this helpful?

Studdy solves anything!

banner

Start learning now

Download Studdy AI Tutor now. Learn with ease and get all help you need to be successful at school.

ParentsInfluencer programContactPolicyTerms
TwitterInstagramFacebookTikTokDiscord