Final answer:
The employer's biweekly paycheck will be reduced by $84 to cover their contribution towards the employee's health insurance.
Step-by-step explanation:
The health insurance coverage for an employee is $2730 per year.
The employer pays 80% of that cost, which means they cover $2184 (80% of $2730) and the employee covers the remaining 20% which is $546 (20% of $2730). Since the employer's contribution is spread out over the year, we need to divide that amount by the number of paychecks the employer receives in a year.
Let's assume the employer receives biweekly paychecks.
There are 52 weeks in a year, so the employer receives 26 biweekly paychecks.
To find out how much is taken from the employer's biweekly paycheck, we divide the employer's annual contribution by the number of paychecks: $2184/26 = $84
Therefore, the employer's biweekly paycheck will be reduced by $84 to cover their contribution towards the employee's health insurance.