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 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 Company Cost Employee Cost (Current) (Current) $ 7,900.00 $ 1,185.00 220.00 220.00 420.00 0 210.00 0 84.00 0 42.00 0 1,050.00 2,100.00 4,252.89 4,252.89 994.63 0 994.63 3,000.00 $ 18,173.52 70,000.00 $ 88,173.52 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 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 Company Cost Employee Cost (New) (New) 0 0 0 0 0
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 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 Company Cost Employee Cost (Current) (Current) $ 7,900.00 $ 1,185.00 220.00 220.00 420.00 0 210.00 0 84.00 0 42.00 0 1,050.00 2,100.00 4,252.89 4,252.89 994.63 0 994.63 3,000.00 $ 18,173.52 70,000.00 $ 88,173.52 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 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 Company Cost Employee Cost (New) (New) 0 0 0 0 0
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 39P
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Transcribed Image Text:Critical Thinking 6-2 (Algo)
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
Medical insurance
Company Cost
(Current)
$ 7,900.00
220.00
Employee Cost
(Current)
$ 1,185.00
220.00
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
Required:
420.00
0
210.00
0
84.00
0
42.00
0
1,050.00
2,100.00
4,252.89
4,252.89
994.63
3,000.00
$ 18,173.52
70,000.00
994.63
0
$ 88,173.52
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
Medical insurance
Dental insurance
Life insurance
AD&D
Short-term disability
Long-term disability
401(k)
Social Security
Medicare
Tuition reimbursement
Company Cost
(New)
Employee Cost
(New)
Total yearly benefit costs (employer)
Employee's annual salary
The total value of the employee's compensation
$
0.00
0
0
0
0
0
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