Let's break down the problem step by step to determine how much is taken from the employee's biweekly paycheck for health insurance coverage.
1. Total yearly insurance cost:
The total yearly cost for health insurance is [tex]$12,870.
2. Employer's contribution:
The employer covers 60% of the total yearly insurance cost. To find out how much the employer pays:
\[
\text{Employer's contribution} = 0.60 \times 12870 = 7722
\]
So, the employer pays $[/tex]7,722 per year.
3. Employee's yearly contribution:
The employee is responsible for the remaining percentage of the yearly cost. To find out how much the employee pays per year:
[tex]\[
\text{Employee's yearly contribution} = \text{Total yearly cost} - \text{Employer's contribution}
\][/tex]
[tex]\[
\text{Employee's yearly contribution} = 12870 - 7722 = 5148
\][/tex]
So, the employee pays [tex]$5,148 per year.
4. Employee's biweekly contribution:
There are 26 biweekly periods in a year. To find out how much is taken from the employee's biweekly paycheck:
\[
\text{Employee's biweekly contribution} = \frac{\text{Employee's yearly contribution}}{26}
\]
\[
\text{Employee's biweekly contribution} = \frac{5148}{26} = 198
\]
So, the amount taken from the employee's biweekly paycheck is $[/tex]198.
Therefore, the biweekly insurance cost for the employee, [tex]\(S\)[/tex], is $198.00.
