Question

Health insurance coverage for an employee is $2470 per year. Their employer pays 80% of that cost. How much is taken from the employee’s biweekly paycheck?

Answer 1

The employee's share of the health insurance cost taken from their biweekly paycheck is $4.75.

Step-by-step explanation:

In this case, the employee's health insurance coverage is $2470 per year and their employer pays 80% of that cost. To find out how much is taken from the employee's biweekly paycheck, we need to determine the employee's share of the cost.

Step 1: Calculate the employer's contribution by multiplying the coverage cost by the employer's share: $2470 x 0.8 = $1976.

Step 2: Calculate the employee's share by subtracting the employer's contribution from the coverage cost: $2470 - $1976 = $494.

Step 3: Divide the employee's share by the number of pay periods in a year (52 weeks x 2 = 104 biweekly periods): $494 / 104 = $4.75.

Therefore, $4.75 is taken from the employee's biweekly paycheck for health insurance.