health insurance coverage for an employee and their spouse is $6,500 per year. the employer pays 70% of that…
health insurance coverage for an employee and their spouse is $6,500 per year. the employer pays 70% of that cost. how much is taken from the employees biweekly paycheck? biweekly insurance cost = $?
Answer
Explanation:
Step1: Calculate employee's annual cost
The employer pays 70%, so the employee pays 100% - 70% = 30% of the $6,500 cost. $6500\times0.3 = 1950$
Step2: Calculate number of bi - weekly periods
There are 52 weeks in a year, so the number of bi - weekly (every 2 weeks) periods is $\frac{52}{2}=26$.
Step3: Calculate bi - weekly cost
Divide the employee's annual cost by the number of bi - weekly periods. $\frac{1950}{26}=75$
Answer:
75