sofia earns $70,000 per year, receives 15 days pto, 8% retirement matching, and receives 70% employer…

sofia earns $70,000 per year, receives 15 days pto, 8% retirement matching, and receives 70% employer - subsidized health insurance which totals $10,000. calculate the benefit rate. employee benefits health insurance 70% fica 7.65% paid vacation (pto) 15 days retirement matching 8% round to the nearest percentage point.

sofia earns $70,000 per year, receives 15 days pto, 8% retirement matching, and receives 70% employer - subsidized health insurance which totals $10,000. calculate the benefit rate. employee benefits health insurance 70% fica 7.65% paid vacation (pto) 15 days retirement matching 8% round to the nearest percentage point.

Answer

Explanation:

Step1: Calculate value of health - insurance benefit

The total cost of health - insurance is $10000$ and the employer subsidizes 70%, so the value of the health - insurance benefit is $0.7\times10000 = 7000$.

Step2: Calculate value of retirement - matching benefit

The employee's salary is $70000$ and the retirement - matching is 8%, so the value of the retirement - matching benefit is $0.08\times70000=5600$.

Step3: Calculate value of PTO benefit

Assume a 20 - workday month and 12 months a year, so there are $20\times12 = 240$ workdays in a year. The value of a workday of salary is $\frac{70000}{240}$. The PTO is 15 days, so the value of the PTO benefit is $15\times\frac{70000}{240}=4375$.

Step4: Calculate total benefit amount

The total benefit amount is $7000 + 5600+4375=16975$.

Step5: Calculate benefit rate

The benefit rate is $\frac{16975}{70000}\times100%\approx24%$.

Answer:

24%