00:01
For this question, we need to answer to calculate two transactions.
00:07
One is with a non -irs approved health care plan.
00:20
And then the second one, we need to see what the amount is with an irs approved health care plan.
00:34
So as noted in the question, the salary for the employee is $95 ,000.
00:42
And the monthly health insurance cost that the company is paying is $150.
00:53
So because it's monthly and 12 months in the year, we want to multiply that by 12.
00:59
Then we also need to add in the social security taxes as well as the medicare taxes.
01:09
So we're going to multiply both amounts by their applicable percentages.
01:15
So this one is 6 .2, which is just that, plus this one times the 1 .45%, which if using a calculator would be that.
01:30
So next, we just want to add these amounts up.
01:33
So we have $95 ,000 plus $1 ,800 plus $5 ,890 plus $1 ,377 .50.
01:47
And once we add all of these up, we have a total cost of $104 ,067 .50.
01:58
Now for the next one, it says we're using an irs approved plan...