A thirty-five year old staff member recently joined ABC University as a full-time, benefits-eligible employee. The employee
Question:
A thirty-five year old staff member recently joined ABC University as a full-time, benefits-eligible employee. The employee is not married and does not have any children. The employee's salary at ABC University is $36,000. The employee is paid monthly. The employee is relatively healthy and does not take any prescription drugs. No elective surgeries or restorative dental care is expected for the 2020 calendar year. The employee does wear prescription eyeglasses. Only the employee benefits provided through ABC University are available to this household. Justify the reasons for your recommendations.
PPO Core – UMR/UHC Monthly Premium 2% Admin Fee Total Monthly COBRA Rate | |||
EMP | $726.56 | $14.53 | $741.09 |
EMP & SP | $1,717.18 | $34.34 | $1,751.52 |
EMP & CH | $1,107.98 | $22.16 | $1,130.14 |
EMP & FAM | $1,791.72 | $35.83 | $1,827.55 |
PPO Plus – UMR/UHC | |||
EMP | $945.45 | $18.91 | $964.36 |
EMP & SP | $2,234.55 | $44.69 | $2,279.24 |
EMP & CH | $1,400.39 | $28.01 | $1,428.40 |
EMP & FAM | $2,331.52 | $46.63 | $2,378.15 |
CDHD (HDHP) Plan – UMR/UHC | |||
EMP | $606.75 | $12.14 | $618.89 |
EMP & SP | $1,358.54 | $27.17 | $1,385.71 |
EMP & CH | $1,031.04 | $20.62 | $1,051.66 |
EMP & FAM | $1,648.69 | $32.97 | $1,681.66 |
Dental – Delta Dental | |||
EMP | $35.88 | $0.72 | $36.60 |
EMP & SP | $69.47 | $1.39 | $70.86 |
EMP & CH | $76.66 | $1.53 | $78.19 |
EMP & FAM | $125.01 | $2.50 | $127.51 |
Vision – EyeMed | |||
EMP | $6.87 | $0.14 | $7.01 |
EMP & SP | $12.30 | $0.25 | $12.55 |
EMP & CH | $14.37 | $0.29 | $14.66 |
EMP & FAM | $17.80 | $0.36 | $18.16 |
Will you recommend the employee contribute to a Flexible Spending Account (FSA); if so how much?Will you recommend the employee contribute to a Health Savings Account (HSA); if so how much?
Will you recommend the employee participate in the retirement plan; if so how much (dollar amount or percentage of base salary from ABC University)?
Prepare a monthly budget of the total employee's share of the cost of benefit(s) recommendations you make.
Indicate the tax treatment (pre-tax or post-tax) of the employee contributions/premiums to the plans you recommended.
For contributions identified as pre-tax, be sure to clarify whether the pre-tax contributions is before income tax, social security payroll tax, or both.
Calculate the percentage of the employee's gross base monthly income spent on the employee's contributions to the benefits you recommended.
Determine if this percentage is equal to, greater than, or less than average industry average.
Vector Mechanics for Engineers Statics and Dynamics
ISBN: 978-0073212227
8th Edition
Authors: Ferdinand Beer, E. Russell Johnston, Jr., Elliot Eisenberg, William Clausen, David Mazurek, Phillip Cornwell