Math

QuestionThe employee's biweekly insurance cost is $[6,760×0.3/26]\$[6,760 \times 0.3 / 26].

Studdy Solution

STEP 1

Assumptions1. The total cost of health insurance coverage for an employee and their spouse is $6,760 per year. . The employer pays70% of the total cost.
3. The remaining cost is deducted from the employee's paycheck.
4. The employee is paid biweekly, meaning they receive a paycheck every two weeks.

STEP 2

First, we need to find the amount the employer pays. We can do this by multiplying the total cost by the employer's contribution rate.
Employerspayment=TotalcosttimesEmployerscontributionrateEmployer's\, payment = Total\, cost \\times Employer's\, 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 payment.
Employerspayment=$6,760times70%Employer's\, payment = \$6,760 \\times70\%

STEP 4

Convert the percentage to a decimal value.
70%=0.770\% =0.7Employerspayment=$6,760times0.7Employer's\, payment = \$6,760 \\times0.7

STEP 5

Calculate the employer's payment.
Employerspayment=$,760times0.7=$4,732Employer's\, payment = \$,760 \\times0.7 = \$4,732

STEP 6

Now that we have the employer's payment, we can find the amount the employee has to pay. This is the total cost minus the employer's payment.
Employeespayment=TotalcostEmployerspaymentEmployee's\, payment = Total\, cost - Employer's\, payment

STEP 7

Plug in the values for the total cost and the employer's payment to calculate the employee's payment.
Employeespayment=$6,760$4,732Employee's\, payment = \$6,760 - \$4,732

STEP 8

Calculate the employee's payment.
Employeespayment=$6,760$4,732=$2,028Employee's\, payment = \$6,760 - \$4,732 = \$2,028

STEP 9

Now that we have the employee's annual payment, we can divide this by the number of pay periods in a year to find the amount deducted from each paycheck. There are26 biweekly pay periods in a year.
Biweeklydeduction=Employeespayment/NumberofpayperiodsBiweekly\, deduction = Employee's\, payment / Number\, of\, pay\, periods

STEP 10

Plug in the values for the employee's payment and the number of pay periods to calculate the biweekly deduction.
Biweeklydeduction=$2,028/26Biweekly\, deduction = \$2,028 /26

STEP 11

Calculate the biweekly deduction.
Biweeklydeduction=$,028/26=$78Biweekly\, deduction = \$,028 /26 = \$78The amount taken from the employee's biweekly paycheck for health insurance is $78.

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