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 $ 6,300.00 $ 945.00 Dental insurance $ 140.00 $ 140.00 Life insurance $ 216.00 0 AD&D $ 108.00 0 Short-term disability $ 43.20 0 Long-term disability $ 21.60 0 401(k) $ 540.00 $ 1,080.00 Social Security $ 2,164.73 $ 2,164.73 Medicare $ 506.27 $ 506.27 Tuition reimbursement $ 2,200.00 0 Total yearly benefit costs (employer) $ 12,239.80 Employee’s annual salary 36,000.00 Total value of employee’s compensation $ 48,239.80

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.

Accounting payroll 2020

Mcgraw Hill

Answer 1