rachel earns $52,000 per year, receives 15 days pto, 8% retirement matching, and receives 60% employer…

rachel earns $52,000 per year, receives 15 days pto, 8% 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) 15 days\nretirement matching 8%\n\nround to the nearest percentage point.
Answer
Explanation:
Step1: Calculate value of PTO
First, find daily - pay. There are 260 work - days in a year (assuming 52 weeks with 5 work - days per week). Daily pay = $\frac{52000}{260}=200$. Value of 15 days PTO = $15\times200 = 3000$.
Step2: Calculate value of retirement matching
Value of retirement matching = $0.08\times52000 = 4160$.
Step3: Calculate value of health insurance subsidy
Value of health insurance subsidy = $0.6\times10000 = 6000$.
Step4: Calculate total benefits
Total benefits = $3000 + 4160+6000=13160$.
Step5: Calculate benefit rate
Benefit rate = $\frac{13160}{52000}\times100%\approx25%$.
Answer:
25%