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Claude Lopez is the president of Zebra Antiques. His employee, Dwight Francis, is due a raise. Dwight's current benefit analysis is as follows: Yearly Benefit
Claude Lopez is the president of Zebra Antiques. His employee, Dwight Francis, is due a raise. Dwight's current benefit analysis is as follows:
Yearly Benefit Costs | Company Cost (Current) | Employee Cost (Current) | ||||||
Medical insurance | $ | 6,300.00 | $ | 945.00 | ||||
Dental insurance | $ | 140.00 | $ | 140.00 | ||||
Life insurance | $ | 216.00 | 0 | |||||
AD&D | $ | 108.00 | 0 | |||||
Short-term disability | $ | 43.20 | 0 | |||||
Long-term disability | $ | 21.60 | 0 | |||||
401(k) | $ | 540.00 | $ | 1,080.00 | ||||
Social Security | $ | 2,164.73 | $ | 2,164.73 | ||||
Medicare | $ | 506.27 | $ | 506.27 | ||||
Tuition reimbursement | $ | 2,200.00 | 0 | |||||
Total yearly benefit costs (employer) | $ | 12,239.80 | ||||||
Employees annual salary | 36,000.00 | |||||||
Total value of employees compensation | $ | 48,239.80 | ||||||
Required:
Compute the benefit analysis assuming:
- 7 percent increase in pay.
- 3 percent contribution to 401(k) will remain the same with a company match of 50 percent.
- 10 percent increase in medical and dental insurance premiums.
(Round your answers to 2 decimal places.)
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