To calculate the benefit rate for Natasha, we need to determine the total value of her benefits and then divide that by her annual salary. Let's break down each component step-by-step:
1. Paid Time Off (PTO) Calculation:
- Natasha has a salary of \[tex]$60,000 per year and receives 10 days of paid time off.
- There are approximately 260 workdays in a year.
- The value of the PTO can be calculated by determining how much Natasha earns in a single day and then multiplying by the number of PTO days:
\[
\text{Daily Salary} = \frac{\$[/tex]60,000}{260} \approx \[tex]$230.77
\]
\[
\text{PTO Value} = \$[/tex]230.77 \times 10 \approx \[tex]$2,307.69
\]
2. Retirement Matching Calculation:
- Natasha's employer matches 6% of her salary for retirement.
- This value can be calculated as follows:
\[
\text{Retirement Matching Value} = \$[/tex]60,000 \times 0.06 = \[tex]$3,600
\]
3. Health Insurance Calculation:
- Natasha's employer subsidizes 60% of her health insurance, which amounts to a total of \$[/tex]10,000.
- The value of the employer's contribution to the health insurance can be calculated as:
[tex]\[
\text{Health Insurance Value} = \$10,000 \times 0.60 = \$6,000
\][/tex]
4. FICA Calculation:
- The Federal Insurance Contributions Act (FICA) tax is 7.65% of Natasha's salary.
- This value can be calculated as follows:
[tex]\[
\text{FICA Value} = \$60,000 \times 0.0765 = \$4,590
\][/tex]
5. Total Benefits Calculation:
- Now, we add up all the individual benefit values:
[tex]\[
\text{Total Benefits} = \$2,307.69 + \$3,600 + \$6,000 + \$4,590 = \$16,497.69
\][/tex]
6. Benefit Rate Calculation:
- Finally, we calculate the benefit rate by dividing the total benefits by Natasha's annual salary:
[tex]\[
\text{Benefit Rate} = \frac{\text{Total Benefits}}{\text{Salary}} = \frac{\$16,497.69}{\$60,000} \approx 0.275
\][/tex]
- Converting to percentage:
[tex]\[
\text{Benefit Rate} \approx 27.5\%
\][/tex]
So, Natasha's various benefits amount to approximately 27.5% of her salary. The benefit rate is 0.275. Here are the detailed benefit values once more:
- PTO Value: \[tex]$2,307.69
- Retirement Matching Value: \$[/tex]3,600
- Health Insurance Value: \[tex]$6,000
- FICA Value: \$[/tex]4,590
- Total Benefits: \$16,497.69
- Benefit Rate: 0.275 or 27.5%
