Question

Scott's employer pays 55% of his health insurance premium and deducts the

remainder from his paycheck. Scott is paid biweekly and the annual premium is
$20,969. How much is deducted from his paycheck for health insurance? Round
answer to the hundredths place. If the answer doesn't have a hundredths place then
use zeros so that it does. Do not include units in the answer.
Your Answer:

Answer 1

To calculate how much is deducted from Scott’s paycheck, we need to first find out how much his employer pays for his health insurance premium.

55% of the annual premium is covered by the employer, so we can calculate this as:

0.55 x $20,969 = $11,532.95

Therefore, Scott’s employer pays $11,532.95 towards his health insurance premium.

To find out how much is deducted from Scott’s paycheck, we need to divide the remaining 45% of the premium by the number of pay periods in a year. Since Scott is paid biweekly, he receives 26 paychecks in a year.

45% of the annual premium is not covered by the employer, so we can calculate this as:

0.45 x $20,969 = $9,437.55

To find out how much is deducted from each biweekly paycheck, we can divide $9,437.55 by 26:

$9,437.55 ÷ 26 = $363.75 (rounded to the nearest cent)

Therefore, Scott’s employer pays $11,532.95 towards his health insurance premium and $363.75 is deducted from each of his biweekly paychecks for health insurance.