Question

Health insurance coverage for an employee is $1950 per year. Their employer pays 80% of that cost. How much is taken from the employee’s biweekly paycheck?

Answer 1

To find the biweekly health insurance deduction from the employee's paycheck, calculate 20% of the $1950 annual insurance cost, which is $390, and then divide that amount by 26 biweekly periods to get $15 per biweekly paycheck.

Step-by-step explanation:

The student asked how much is taken from the employee’s biweekly paycheck if the health insurance coverage costs $1950 per year and the employer pays 80% of that cost. To find out how much the employee needs to pay annually, we calculate 20% of the total insurance cost since the employer covers the remaining 80%. This equates to 0.20 × $1950 = $390 annually. To determine the biweekly deduction, we divide $390 by the number of biweekly periods in a year, which is 26 (52 weeks in a year divided by 2). Therefore, $390 ÷ 26 = $15 per biweekly paycheck.