ian earns $62,000 per year, receives 15 days pto, 6% retirement matching, and receives 70% employer…

ian earns $62,000 per year, receives 15 days pto, 6% 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) 15 days\nretirement matching 6%\n\nround to the nearest percentage point.

ian earns $62,000 per year, receives 15 days pto, 6% 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) 15 days\nretirement matching 6%\n\nround to the nearest percentage point.

Answer

Explanation:

Step1: Calculate cost of health - insurance subsidy

The total cost of health - insurance is $10,000 and the employer subsidizes 70%, so the employer's cost for health - insurance is $10000\times0.7 = 7000$.

Step2: Calculate value of PTO

Assume a 20 - workday month and 12 months in a year, so there are $20\times12 = 240$ workdays in a year. Ian's annual salary is $62000$. His daily salary is $\frac{62000}{240}\approx258.33$. The value of 15 days of PTO is $15\times258.33 = 3874.95\approx3875$.

Step3: Calculate value of retirement - matching

The value of retirement - matching is $62000\times0.06=3720$.

Step4: Calculate total benefits

The total benefits are $7000 + 3875+3720=14595$.

Step5: Calculate benefit rate

The benefit rate is $\frac{14595}{62000}\times100%\approx23.54%$. Rounding to the nearest percentage point, the benefit rate is 24%.

Answer:

24%