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Calculate the benefit rate based on the following information:

- [tex]$6 \%$[/tex] retirement matching
- [tex]$60 \%$[/tex] employee-subsidized health insurance totaling [tex]$\$[/tex] 10,000[tex]$
- FICA: $[/tex]7.65 \%[tex]$
- Paid Vacation (PTO): 10 days

\begin{tabular}{|l|c|}
\hline
\multicolumn{2}{|c|}{Employee Benefits} \\
\hline
Health Insurance & $[/tex]60 \%[tex]$ \\
\hline
FICA & $[/tex]7.65 \%[tex]$ \\
\hline
Paid Vacation (PTO) & 10 days \\
\hline
Retirement Matching & $[/tex]6 \%$ \\
\hline
\end{tabular}

Calculate the benefit rate (in percentage) and round to the nearest percentage point.



Answer :

GinnyAnswer
To calculate the benefit rate, let's break down each component step-by-step.

1. Health Insurance Subsidy Calculation:
- The total cost of health insurance is [tex]$10,000. - The health insurance subsidy is 60% of this amount. - Subsidy amount: \( \text{\$[/tex]10,000} \times 0.60 = \text{\$6,000} \)
- Converting this percentage to percentage points: [tex]\( 60\% \)[/tex]

2. FICA (Federal Insurance Contributions Act) Contribution:
- The FICA contribution rate is 7.65%.
- In percentage points: [tex]\( 7.65\% \)[/tex]

3. Retirement Matching Contribution:
- The retirement matching rate is 6%.
- In percentage points: [tex]\( 6\% \)[/tex]

4. Summing up All Benefit Rates:
- Total benefit rate, sum of all benefit rates:
[tex]\[ \text{Total benefit rate} = \text{Health Insurance Subsidy Percentage} + \text{FICA Percentage} + \text{Retirement Matching Percentage} \][/tex]
[tex]\[ \text{Total benefit rate} = 60\% + 7.65\% + 6\% = 73.65\% \][/tex]

5. Rounding to the Nearest Percentage Point:
- The total benefit rate is 73.65%.
- When rounded to the nearest whole number, 73.65% rounds to 74%.

Therefore, the benefit rate is [tex]\(\boxed{74\%}\)[/tex].

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