Kai is the president of Zebra Antiques. An employee, Reese Francis, is due a raise. Reese's current benefit analysis is as follows: Company Cost (Current) $ 8,000.00 120.00 Employee Cost (Current) $ 1,200.00 Yearly Benefit Costs Medical insurance Dental insurance Life insurance AD&D Short-term disability Long-term disability 401(k) Social Security Medicare Tuition reimbursement Total yearly benefit costs (employer) Employee's annual salary The total value of the employee's compensation 120.00 300.00 Ө 150.00 0 60.00 0 30.00 0 1,500.00 3,018.16 705.86 0 750.00 3,018.16 705.86 $ 2,000.00 $ 15,134.02 50,000.00 $ 65,134.02 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. Yearly Benefit Costs Company Cost (New) Employee Cost (New) Medical insurance $ 9,200.00 $ 1,380.00
Kai is the president of Zebra Antiques. An employee, Reese Francis, is due a raise. Reese's current benefit analysis is as follows: Company Cost (Current) $ 8,000.00 120.00 Employee Cost (Current) $ 1,200.00 Yearly Benefit Costs Medical insurance Dental insurance Life insurance AD&D Short-term disability Long-term disability 401(k) Social Security Medicare Tuition reimbursement Total yearly benefit costs (employer) Employee's annual salary The total value of the employee's compensation 120.00 300.00 Ө 150.00 0 60.00 0 30.00 0 1,500.00 3,018.16 705.86 0 750.00 3,018.16 705.86 $ 2,000.00 $ 15,134.02 50,000.00 $ 65,134.02 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. Yearly Benefit Costs Company Cost (New) Employee Cost (New) Medical insurance $ 9,200.00 $ 1,380.00
Chapter6: Business Expenses
Section: Chapter Questions
Problem 50P
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Transcribed Image Text:Kai is the president of Zebra Antiques. An employee, Reese Francis, is due a raise. Reese's current benefit analysis is as follows:
Company Cost
(Current)
$ 8,000.00
120.00
Employee Cost
(Current)
$ 1,200.00
Yearly Benefit Costs
Medical insurance
Dental insurance
Life insurance
AD&D
Short-term disability
Long-term disability
401(k)
Social Security
Medicare
Tuition reimbursement
Total yearly benefit costs (employer)
Employee's annual salary
The total value of the employee's compensation
120.00
300.00
Ө
150.00
0
60.00
0
30.00
0
1,500.00
3,018.16
705.86
0
750.00
3,018.16
705.86
$ 2,000.00
$ 15,134.02
50,000.00
$ 65,134.02
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.
Yearly Benefit Costs
Company Cost
(New)
Employee Cost
(New)
Medical insurance
$
9,200.00 $
1,380.00
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