Check my work effect on the first pay period of March. To calculate the life insurance benefit, multiply the employee's annual salary by 1 percent. For example, if an employee earned $50,000 per year, the life insurance would be $50,000 Check my work effect on the first pay period of March. To calculate the life insurance benefit, multiply the employee's annual salary by 1 percent. For example, if an employee earned $50,000 per year, the life insurance would be $50,000