Billy’s employer pays for 65% of his annual health insurance premium. Billy has the rest deducted in equal amounts from his payc
heck. If Billy has $105.73 withheld from his paychecks twice each month, how much does his employer contribute towards his health insurance on an annual basis?
His total annual premium 4712.54
. Billy received the deducted by $105.73 paycheck, twice a month throughout the year, so he received 24 deducted paychecks in a year. The sum of all the deducted $105.73 amount throughout the year will be the 35% of Billy's total annual health insurance premium.
To get the amount his employer contribute towards his health insurance on an annual basis, we will have to multiply the sum deducted by twice a month throughout the year in which he received deducted paychecks.
105.73 * 24 = 2537.52
The next step is to divide our answer with 35% of Billy's total annual health insurance premium.
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