Question

Sergio's employer covers 80% of the cost of a $3300-per-year health insurance plan and 70% of the cost of a $1400-per-year disability insurance plan. if sergio gets paid monthly, what is the total amount deducted from his gross income for health and disability insurance during each pay period?

Answer 1

Total employer cover = 0.8*3300 +0.7*1400 = 3,620

Sergio's contribution annually = 3300+1400 -3,620 = 1,080 per year

Since the pay period is monthly, the gross amount deducted each month = 1,080/12 = $90/month for his health and disability insurance