6.4 Employee Benefits

Report
Section 6-4


I.
II.
III.
IV.
V.
VI.
What are some benefits of having a job?
The benefits of salaried workers can include:
Vacation Time
Holiday Time
Retirement Plans
Stock Ownership Plans
Childcare Leave
Health Care

Paid Vacation
Often times, companies will increase
vacation time with seniority.
→The longer you work there, the more
vacation time you receive.
1)
Make a chart listing the number of years
worked compared to the number of vacation
days
2)
Find a pattern between the two values
3)
Keep in mind that many jobs will offer
vacation days when years worked is equal to
zero

You work for a paper supply company. When
you were hired, your company gave you 3
vacation days with the promise of 2 additional
vacation days per year that you work there.
Create an equation that models this
relationship.
1) Make a chart of values
Yrs Vac.
Worked Days
0 3
1 5
2 7
3 9


Yrs
Worked
0
1
2
Pattern:
3
→ Increase by 2 every time
Let x = # of years
worked

y = (increase)x + (initial vac. days)

y = 2x + 3
Vac.
Days
3
5
7
9

Alan works for a printing company. It has
been a little over 4 years since he was hired.
He now makes $54,080 per year. When he was
hired, he was told that he had 5 days of paid
vacation time. For each year that he worked,
he would gain another two days of paid
vacation time to a maximum of 20 days. Find
an equation modeling this relationship.
Yrs Worked: 0
Vac. Days:
5
1
2
3
7
9
11
Equation: y = 2x + 5
Alan works for a printing company. It has been a
little over 4 years since he was hired. He now makes
$54,080 per year. When he was hired, he was told
that he had 5 days of paid vacation time. For each
year that he worked, he would gain another two
days of paid vacation time to a maximum of 20 days.
How many vacation days will he have after 4 years?.
Equation: y = 2x + 5
4 years → x = 4
y = 2(4) + 5
13 vacation days
Alan works for a printing company. It has been a
little over 4 years since he was hired. He now makes
$54,080 per year. When he was hired, he was told
that he had 5 days of paid vacation time. For each
year that he worked, he would gain another two
days of paid vacation time to a maximum of 20 days.
How many vacation days will he have after 4 years?.
How much would Alan make over his 13 days?
13 days = 2.6 work weeks
Weekly Pay: 54,080 / 52 = $1,040
2.6 x $1,040 = $2,704

Worksheet on Vacation Days
2) Roberto’s employer offers a sliding paid
vacation. When he started work, he was given 3
paid days of vacation. For each six-month period
he stays at the job, his vacation is increased by 2
days.
x = every 6 month period
½ Yrs Worked: 0
Vac. Days: 3
1
2
3
5
7
9
Equation: y = 2x + 3
How much vacation time will she receive after 4.4
years?
Equation: y = 2x + 3
x represents 6 month periods
How many 6 month periods are there in 4.4 years?
y = 2(8)+3
= 19 days
3) When Lisa started at her current job, her
employer gave her 2 days of paid vacation
with the promise of 3 addition days for each
year she remained there, with a maximum of 4
weeks paid vacation.
x = years worked there
Yrs Worked: 0
Vac. Days: 2
1
2
3
5
8
11
Equation: y = 3x + 2


It has been 5 years. How many days has she
earned?
y = 3x + 2
y = 3(5) + 2
y = 17 days
When will she reach the maximum?
y = 3x + 2
20 = 3x + 2
18 = 3x
x = 6 years → after 6 years
4) When Lou started his current job, he was told
that he would receive two vacation days for
each year he worked at the company.
Yrs Worked: 0
Vac. Days: 0
1
2
3
2
4
6
Equation: y = 2x
To earn 18 days?
→ 9 years
5) When George started his current job, his
employer told him that at the end of the first
year, he would receive 2 vacation days. After
each year he worked, his number of days
would double up to 5 weeks.
Yrs Worked: 0
Vac. Days: 0
1
2
3
2
4
8
x
Equation: y = 2
After 4 years?
→ 16 years
Section 6-4




Healthcare is taken out of all paychecks.
Covers such items as health insurance, dental
insurance, etc.
You pay a percentage, your employer pays a
percentage.
Who do you think pays a higher percentage of
your healthcare?
P•C=I
P = Percent of individual contribution
(written as a decimal)
C = Annual Cost of Healthcare (total)
I = Individual’s cost for Healthcare (what you pay)

At your new job, you contribute 20% of the cost
of your healthcare. This ends up being a $22
deduction from your weekly paycheck. What
is the total value of your healthcare for the
year?
P = 0.20 I = $1,144
How much do0.20
youCcontribute
= 1,144 per year?
C = $5,720
Healthcare cost for the year is $5,720

For your new healthcare coverage, you pay
15% of the total cost for the year. If your
biweekly check has a healthcare deduction of
$36.00, how much does your employer pay?
P = 0.15
I = $936
0.15 C = $936
C = $6,240
Your employer would
pay 6,240 – 936
= $5,304
Total Cost of your healthcare is $6,240.

Target’s healthcare policy is that they will pay $1,300
per month for an employee’s healthcare. Andy, a
new employee, notices that $48 is taken out of his
weekly paycheck for healthcare. What percent of his
healthcare does he pay?
P = 0.138
C = 18,096
I = 2,496
TotalIndividual
Coverage annual
Company
cost
cost
48 *+52
Individual cost
P= (18,096)
==
2496
= 1300 *P12= =
+ 2,496
2,496
.138
= 18,096
Your contribution is 13.8%

Complete worksheet on healthcare
Rachel contributes 20% of the cost of her individual
healthcare. This is a $38 deduction from each of her
weekly paychecks. What is the total value of the
coverage for the year?
Step 1) Find I
→ ($38)(52 weeks)
→ $1,976
Step 2) Find P
→ P = 0.20
0.20 • C = 1,976
C = $9,880
A) Graham makes $62,800 per year. He has individual
healthcare. His yearly contribution is 10% of the total
cost. How much does his employer contribute?
3) 0.10 • C = 624
Step 1) Find I
C = $6,240
→ ($52)(12 months)
→ $624
Step 2) Find P
→ P = 0.10
Employer Contributes:
= 6,240 - 624
= $5,616
A) Claudia’s annual salary is $75,400. She has family
healthcare. Her employer contributes $1,052 per moth.
What percent does Claudia contribute?
Step 1) Find I
→ ($122)(12 months)
→ $1,464
Step 2) Find C
→ Employer + Individual
= 1052* 12 + 1464
= 14,088
14,088P = 1,464
P = .104
P = 10.4%
Maryanne began a job that gives her 4 vacation plus 3
additional days for each year she is employed, up to a
maximum of 25 days of vacation time. How many years
will she be at the company before she reaches the
maximum amount of vacation time?
Yrs
Worked
0
1
2
3
Vac.
Days
4
7
10
13
y = 3x + 4
25 = 3x + 4
21 = 3x
x=7
She will reach the maximum
vacation time after 7 years
Pension and Unemployment


1.
2.
You receive a percentage of your paycheck
during retirement
Based on 2 main things:
Length of employment
Average salary over a certain time period
Your employer offers you a pension of 1.5% of your
average salary for the last 5 years of employment
for every year worked. You are retiring after 25
years of employment and your salaries for the last 5
years are $88,900, $92,200, $96,000, $98,000, and
$102,000.
Find average over last 5 years: $95,420
2) Find 1.5% of the average: $1,431.30
3) Multiply this amount by length of employment
= (95,420) (0.015)
$88,900
+ $92,200 $96,000 + $98,000 + $102,000
== 1,431.3
(1,431.30)(25)
=
= $477,100
35,782.5
Your
annual pension
will be $35,782.50
= $477,100
/5
= $95,420
1)
Liz works at Food for Thought magazine. Her
employer offers her a pension of 2.1% of her
average salary over the last four years for every
year worked. Liz is retiring at the end of this year,
20 years of employment. Her salaries for the last
four years are $66,000; $66,000; $73,000; and
$75,000. Calculate Liz’s pension.
1)
2)
3)
Average Salary: $70,000
2.1% of average salary: $1,470
Pension: $29,400



Similar to unemployment in that you are
receiving a paycheck that is a percentage of
your former salary
Find average
Multiply average by unemployment
percentage
Your weekly unemployment compensation is 60%
of the 26-week average for the two highest salaried
quarters. In one quarter, you earned $9,024. In the
following quarter, you earned $9,800. What is
your unemployment compensation?
1)
2)
3)
Find the total earnings for both quarters: $18,824
Divide
sum by 26 (26 weeks): $724
= $9,024this
+ $9,800
= $18,824this
/ 26
Multiply
by 60%:
($724) (0.60)
= $724
= $434.4
Weekly unemployment check is $434.40

Complete worksheet on unemployment and
healthcare

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