Answer :
Sure, let's go through the calculation step by step to determine how much is deducted from the employee's biweekly paycheck for health insurance.
1. Determine the total annual insurance cost:
The total annual insurance cost for the employee is \[tex]$2,990. 2. Calculate the employer's contribution: The employer pays 80% of the total annual insurance cost. \[ \text{Employer’s contribution} = 0.80 \times \$[/tex]2,990 = \[tex]$2,392 \] 3. Calculate the employee's annual responsibility: The remainder of the insurance cost is covered by the employee. \[ \text{Employee’s annual contribution} = \text{Total annual insurance cost} - \text{Employer’s contribution} \] \[ \text{Employee’s annual contribution} = \$[/tex]2,990 - \[tex]$2,392 = \$[/tex]598
\]
4. Determine the number of biweekly pay periods in a year:
There are 26 biweekly pay periods in a year.
5. Calculate the biweekly deduction from the employee's paycheck:
To find out how much the employee pays biweekly, we divide their annual contribution by the number of biweekly pay periods.
[tex]\[ \text{Biweekly deduction} = \frac{\text{Employee’s annual contribution}}{\text{Number of biweekly pay periods}} \][/tex]
[tex]\[ \text{Biweekly deduction} = \frac{\$598}{26} = \$23 \][/tex]
Thus, the amount deducted from the employee's biweekly paycheck for health insurance is \$23.
1. Determine the total annual insurance cost:
The total annual insurance cost for the employee is \[tex]$2,990. 2. Calculate the employer's contribution: The employer pays 80% of the total annual insurance cost. \[ \text{Employer’s contribution} = 0.80 \times \$[/tex]2,990 = \[tex]$2,392 \] 3. Calculate the employee's annual responsibility: The remainder of the insurance cost is covered by the employee. \[ \text{Employee’s annual contribution} = \text{Total annual insurance cost} - \text{Employer’s contribution} \] \[ \text{Employee’s annual contribution} = \$[/tex]2,990 - \[tex]$2,392 = \$[/tex]598
\]
4. Determine the number of biweekly pay periods in a year:
There are 26 biweekly pay periods in a year.
5. Calculate the biweekly deduction from the employee's paycheck:
To find out how much the employee pays biweekly, we divide their annual contribution by the number of biweekly pay periods.
[tex]\[ \text{Biweekly deduction} = \frac{\text{Employee’s annual contribution}}{\text{Number of biweekly pay periods}} \][/tex]
[tex]\[ \text{Biweekly deduction} = \frac{\$598}{26} = \$23 \][/tex]
Thus, the amount deducted from the employee's biweekly paycheck for health insurance is \$23.
