will earns $70,000 per year, receives 10 days pto, 6% retirement matching, and receives 60% employer…

will earns $70,000 per year, receives 10 days pto, 6% retirement matching, and receives 60% employer - subsidized health insurance which totals $10,000. calculate the benefit rate.\n\nemployee benefits\nhealth insurance 60%\nfica 7.65%\npaid vacation (pto) 10 days\nretirement matching 6%\n\nround to the nearest percentage point.

will earns $70,000 per year, receives 10 days pto, 6% retirement matching, and receives 60% employer - subsidized health insurance which totals $10,000. calculate the benefit rate.\n\nemployee benefits\nhealth insurance 60%\nfica 7.65%\npaid vacation (pto) 10 days\nretirement matching 6%\n\nround to the nearest percentage point.

Answer

Explanation:

Step1: Calculate value of PTO

Assume a 20 - work - day month and 12 months in a year, so 20×12 = 240 work - days in a year. Will's daily salary is $\frac{70000}{240}\approx291.67$. The value of 10 days PTO is $291.67\times10 = 2916.7$.

Step2: Calculate value of retirement matching

The retirement matching amount is $70000\times0.06=4200$.

Step3: Calculate value of health insurance

The employer - subsidized health insurance value is given as $10000$.

Step4: Calculate total benefits

Total benefits = Value of PTO+Value of retirement matching + Value of health insurance = $2916.7 + 4200+10000=17116.7$.

Step5: Calculate benefit rate

Benefit rate = $\frac{\text{Total benefits}}{\text{Annual salary}}\times100=\frac{17116.7}{70000}\times100\approx24.45%$. Rounding to the nearest percentage point, the benefit rate is 24%.

Answer:

24%