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?

Question

Deborah Villegas

Business

14 January, 14:40

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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Daniella Ortiz · 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)