Final answer:
The second employer would need to pay Wilbur an additional $11,842 on top of the initial salary offer to compensate for the 24% tax rate and the cost of health insurance which is not deductible.
Step-by-step explanation:
To determine how much more in salary the second potential employer must pay Wilbur to match the first offer on an after-tax and insurance basis, we must account for both the marginal tax rate of 24% and the cost of health insurance, which is $9,000 per year.
If we assume that the cost of health insurance is not tax-deductible for Wilbur, the second employer would need to cover the $9,000 cost plus the additional tax that would be incurred on that amount. This extra salary needs to offset both the health insurance cost and the taxes on the raised salary. To calculate this, we divide the health insurance by the complement of the marginal tax rate (1 - 0.24).
Extra salary required =
Health insurance cost / (1 - Marginal tax rate)
= $9,000 / (1 - 0.24)
= $9,000 / 0.76
= $11,842.11, rounded to the nearest dollar would be $11,842.
Therefore, the second employer would need to pay Wilbur an additional $11,842 on top of what the first employer offers as salary to compensate for the 24% tax on the additional income and the cost of health insurance.