To determine the biweekly insurance cost that is taken from the employee’s paycheck, follow these steps:
1. Determine the annual cost of the insurance coverage:
The total annual cost for the employee and their children is [tex]\( \$6,240 \)[/tex].
2. Calculate the percentage of the cost that the employer covers:
The employer pays 70% of the total annual cost.
3. Determine the percentage of the cost that the employee must pay:
Since the employer covers 70%, the employee covers the remaining 30%.
4. Calculate the annual amount paid by the employee:
[tex]\[
\text{Employee's annual cost} = 6240 \times 0.3 = 1872
\][/tex]
5. Convert the annual cost for the employee to a biweekly cost:
There are 52 weeks in a year, so there are [tex]\( \frac{52}{2} = 26 \)[/tex] biweekly periods in a year.
[tex]\[
\text{Employee's biweekly cost} = \frac{\text{Employee's annual cost}}{26} = \frac{1872}{26} = 72
\][/tex]
Therefore, the biweekly amount taken from the employee's paycheck for insurance coverage is [tex]\(\$72\)[/tex].
