Question
Julie works full time at a fast food restaurant, earning $30,000 per year. Her employer pays 90% of her health insurance costs and matches her
Julie works full time at a fast food restaurant, earning $30,000 per year. Her employer pays 90% of her health insurance costs and matches her 401K contribution, up to a maximum of 6% of salary. Julie is diabetic and requires daily insulin shots, at $250 per day. Congress has recently enacted a change to the federal minimum wage, causing her salary to increase to $50,000. However, coincident with this change, her employer has announced that they will no longer match the 401K contributions and employees will need to pick up 30% of their health coverage costs. How are these changes likely to affect Julies net income?
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