Kai is the president of Zebra Antiques. An employee, Reese Francis, is due a raise. Reese’s current benefit analysis is as follows: Yearly Benefit Costs Company Cost (Current) Employee Cost (Current) Medical insurance $ 6,400.00 $ 960.00 Dental insurance 145.00 145.00 Life insurance 330.00 0 AD&D 165.00 0 Short-term disability 66.00 0 Long-term disability 33.00 0 401(k) 825.00 1,650.00 Social Security 3,341.49 3,341.49 Medicare 781.48 781.48 Tuition reimbursement 2,250.00 0 Total yearly benefit costs (employer) $ 14,336.97 Employee’s annual salary 55,000.00 The total value of the employee’s compensation $ 69,336.97 Required: Compute the benefit analysis assuming: 3 percent increase in pay. Reese will increase the 401(k) contribution to 8 percent with a company match of 50 percent up to a 3 percent contribution by the employer. 15 percent increase in medical and dental insurance premiums. Note: Round your answers to 2 decimal places.
Kai is the president of Zebra Antiques. An employee, Reese Francis, is due a raise. Reese’s current benefit analysis is as follows: Yearly Benefit Costs Company Cost (Current) Employee Cost (Current) Medical insurance $ 6,400.00 $ 960.00 Dental insurance 145.00 145.00 Life insurance 330.00 0 AD&D 165.00 0 Short-term disability 66.00 0 Long-term disability 33.00 0 401(k) 825.00 1,650.00 Social Security 3,341.49 3,341.49 Medicare 781.48 781.48 Tuition reimbursement 2,250.00 0 Total yearly benefit costs (employer) $ 14,336.97 Employee’s annual salary 55,000.00 The total value of the employee’s compensation $ 69,336.97 Required: Compute the benefit analysis assuming: 3 percent increase in pay. Reese will increase the 401(k) contribution to 8 percent with a company match of 50 percent up to a 3 percent contribution by the employer. 15 percent increase in medical and dental insurance premiums. Note: Round your answers to 2 decimal places.
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 39P
Related questions
Question
Kai is the president of Zebra Antiques. An employee, Reese Francis, is due a raise. Reese’s current benefit analysis is as follows:
| Yearly Benefit Costs | Company Cost (Current) | Employee Cost (Current) |
|---|---|---|
| Medical insurance | $ 6,400.00 | $ 960.00 |
| Dental insurance | 145.00 | 145.00 |
| Life insurance | 330.00 | 0 |
| AD&D | 165.00 | 0 |
| Short-term disability | 66.00 | 0 |
| Long-term disability | 33.00 | 0 |
| 401(k) | 825.00 | 1,650.00 |
| Social Security | 3,341.49 | 3,341.49 |
| Medicare | 781.48 | 781.48 |
| Tuition reimbursement | 2,250.00 | 0 |
| Total yearly benefit costs (employer) | $ 14,336.97 | |
| Employee’s annual salary | 55,000.00 | |
| The total value of the employee’s compensation | $ 69,336.97 |
Required:
Compute the benefit analysis assuming:
- 3 percent increase in pay.
- Reese will increase the 401(k) contribution to 8 percent with a company match of 50 percent up to a 3 percent contribution by the employer.
- 15 percent increase in medical and dental insurance premiums.
Note: Round your answers to 2 decimal places.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage