Health insurance coverage for an employee and their children is [tex]\[tex]$6,240[/tex] per year. The employer pays [tex]70\%[/tex] of that cost. How much is taken from the employee's biweekly paycheck?

Biweekly Insurance Cost = $[/tex]\[tex]$[?]$[/tex]



Answer :

To find out how much is taken from the employee's biweekly paycheck for health insurance, let's follow these steps:

1. Determine the total annual cost of the health insurance:
The total cost is given as \[tex]$6,240 per year. 2. Calculate the amount the employer pays annually: The employer covers 70% of the total cost. \[ \text{Employer's annual contribution} = 0.70 \times 6240 = \$[/tex]4,368
\]

3. Calculate the amount the employee pays annually:
The remainder of the total cost after the employer's contribution is the amount that the employee needs to pay.
[tex]\[ \text{Employee's annual cost} = 6240 - 4368 = \$1,872 \][/tex]

4. Determine the number of biweekly periods in a year:
There are 52 weeks in a year, and since "biweekly" means every two weeks, the number of biweekly periods is:
[tex]\[ \text{Number of biweekly periods} = \frac{52}{2} = 26 \][/tex]

5. Calculate the biweekly cost for the employee:
Divide the employee's annual cost by the number of biweekly periods to find out how much is taken from the paycheck every two weeks.
[tex]\[ \text{Employee's biweekly cost} = \frac{1872}{26} = \$72 \][/tex]

Therefore, the amount taken from the employee's biweekly paycheck for health insurance is [tex]$\boxed{72}$[/tex].