Question

Marys employee benefits include family healthcare. She contributes 22% of the cost. Mary gets paid biweekly and $170.00 is taken out of each paycheck for family healthcare coverage. How much does her employer contribute annually for the family coverage

Answer 1

$4,080

Explanation:

First of all, it is important to note that a biweekly payment may mean two things; a payment that is made once every two weeks, or twice a week, but the former is most likely the case for a worker.

If $170 is paid every two weeks for healthcare coverage,

The in a month (4 weeks) the amount paid for healthcare coverage

= 170 × 2 =$340

To find the annual payment, we have to note that one year = 12 months

∴ 1 month = $340

∴ 12 months = 340 × 12 = $4,080

on the other hand, and less likely, if biweekly referred to a payment of twice a week;

the healthcare amount for a month

= 170 × 8 = $1,360

therefore, for a year, payment = 1,360 × 12 = $16,320. But like I said this is less likely the case