Question

Claude Lopez is the president of Zebra Antiques. His employee, Dwight Francis, is due a raise. Dwight's current benefit analysis is as follows: Yearly Benefit Costs Company Cost (Current) Employee Cost (Current) Medical insurance $ 7,000.00 $ 1,050.00 Dental insurance $ 175.00 $ 175.00 Life insurance $ 300.00 0 AD&D $ 150.00 0 Short-term disability $ 60.00 0 Long-term disability $ 30.00 0 401(k) $ 750.00 $ 1,500.00 Social Security $ 3,024.05 $ 3,024.05 Medicare $ 707.24 $ 707.24 Tuition reimbursement $ 2,550.00 0 Total yearly benefit costs (employer) $ 14,746.29 Employee’s annual salary 50,000.00 Total value of employee’s compensation $ 64,746.29 Required: Compute the benefit analysis assuming: 7 percent increase in pay. 3 percent contribution to 401(k) will remain the same with a company match of 50 percent. 10 percent increase in medical and dental insurance premiums. (Round your answers to 2 decimal places.) Next Visit question mapQuestion 1 of 15 Total1 of 15 Prev

Answer 1

Yearly benefit costs	Company cost (new)	Employee cost (new)
Medical insurance (7000*1.10); (1050*1.10)	7700	1155
Dental insurance (175*1.10)	192.50	192.50
Life insurance	300	0
AD&D	150	0
Short-term disability	60	0
Long-term disability	30	0
401(k) (53500*3%*50%); (53500*3%)	802.5	1605
Social Security (53500*6.2%)	3317	3317
Medicare (53500*1.45%)	775.75	775.75
Tuition reimbursement	2550	0
Total yearly benefit costs (employer)	15877.75
Dwight’s annual salary (50000*1.07)	53500
Total value of employee’s compensation	$63977.75