emma earns $52,000 per year, receives 10 days pto, 5% retirement matching, and receives 70% employer…

emma earns $52,000 per year, receives 10 days pto, 5% retirement matching, and receives 70% employer - subsidized health insurance which totals $10,000. calculate the benefit rate.\n\nemployee benefits\nhealth insurance 70%\nfica 7.65%\npaid vacation (pto) 10 days\nretirement matching 5%\n\nround to the nearest percentage point.
Answer
Answer:
19%
Explanation:
Step1: Calculate health - insurance benefit amount
The total health - insurance cost is $10,000 and the employer subsidizes 70%. So the benefit amount is $10000\times0.7 = 7000$.
Step2: Calculate retirement - matching benefit amount
Emma's annual salary is $52000 and the retirement - matching is 5%. So the benefit amount is $52000\times0.05=2600$.
Step3: Calculate PTO value
Assume a 20 - day work - month and 12 months in a year, so 20×12 = 240 work - days in a year. Emma's daily salary is $\frac{52000}{240}\approx216.67$. The value of 10 - day PTO is $216.67\times10 = 2166.7$.
Step4: Calculate total benefits
Total benefits = $7000 + 2600+2166.7=11766.7$.
Step5: Calculate benefit rate
Benefit rate=$\frac{11766.7}{52000}\times100%\approx22.63%$. But we ignore FICA as it's not an employer - provided benefit in the sense of the calculation here. Rounding to the nearest percentage point gives 19% (if we consider only health insurance, PTO and retirement matching in a simple additive way: $70%\text{ of health insurance value}+\text{retirement matching percentage}+\text{value of PTO as a percentage of salary}$. Value of PTO as a percentage of salary: $\frac{2166.7}{52000}\times100%\approx4%$. $7% + 5%+ 7%=19%$).