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?

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Business

Parker Chapman

21 April, 01:13

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?

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Gerald Baird · Answer 1

Mike's contribution = 65,150 - 65,000 = 150 = 25% of dental insurance plan

--> Company pays 75% = 3 x 150 = $450/year

(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)