After a deduction for dental insurance was taken out, mike's annual net income went from $65,150 to $65,000. if mike pays 25% of

Question

3 years ago

14

After a deduction for dental insurance was taken out, mike's annual net income went from $65,150 to $65,000. if mike pays 25% of

the cost of his dental insurance plan with his employer covering the rest, how much does his employer contribute toward his dental insurance plan per year?

Business

1 answer:

hram777 [196] · Answer 1 · 2022-04-18T20:02:56+03:00

Mike's contribution = 65,150 - 65,000 = 150 = 25% of dental insurance plan
<span>--> Company pays 75% = 3 x 150 = $450/year </span>

<span>(You have to assume that dental insurance deduction is tax-exempt or you would have to factor in also his tax bracket and thus the gross contribution as oppose to net contribution. I am pretty sure DID is tax-exempt)</span>