{"id":44866,"date":"2025-06-30T19:26:57","date_gmt":"2025-06-30T19:26:57","guid":{"rendered":"https:\/\/gaviki.com\/blog\/?p=44866"},"modified":"2025-06-30T19:27:00","modified_gmt":"2025-06-30T19:27:00","slug":"mark-earns-65000-per-year","status":"publish","type":"post","link":"https:\/\/gaviki.com\/blog\/mark-earns-65000-per-year\/","title":{"rendered":"Mark earns $65,000 per year.\u00a0"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

The Correct Answer and Explanation is:<\/strong><\/p>\n\n\n\n

ased on the information provided in the image, the correct answer is $69.00 per pay<\/strong>.<\/p>\n\n\n\n

Explanation<\/h3>\n\n\n\n

This problem requires a step-by-step calculation to determine the portion of the employer-paid life insurance cost that is added as a taxable benefit to each of Mark’s paychecks. Here is a detailed breakdown of the calculation process.<\/p>\n\n\n\n

1. Calculate the Total Life Insurance Coverage<\/strong><\/p>\n\n\n\n

First, we need to determine the total value of the life insurance policy. The problem states that the policy is for an amount equal to two times Mark’s annual salary.<\/p>\n\n\n\n

    \n
  • Mark’s annual salary: $65,000<\/li>\n\n\n\n
  • Policy coverage multiplier: 2<\/li>\n\n\n\n
  • Total coverage amount: 2 * $65,000 = $130,000<\/li>\n<\/ul>\n\n\n\n

    So, Mark has a group term life insurance policy with a death benefit of $130,000.<\/p>\n\n\n\n

    2. Calculate the Monthly Cost of the Policy<\/strong><\/p>\n\n\n\n

    Next, we calculate the cost that the employer pays for this policy each month. The cost is given as $1.15 per $1000 of coverage per month. To find the total monthly cost, we must first determine how many thousands of dollars are in the total coverage.<\/p>\n\n\n\n

      \n
    • Number of $1000 units in the policy: $130,000 \/ $1,000 = 130 units<\/li>\n\n\n\n
    • Cost per unit: $1.15<\/li>\n\n\n\n
    • Total monthly cost: 130 units * $1.15\/unit = $149.50<\/li>\n<\/ul>\n\n\n\n

      The employer pays $149.50 each month for Mark’s life insurance policy.<\/p>\n\n\n\n

      3. Calculate the Total Annual Cost<\/strong><\/p>\n\n\n\n

      To determine the amount per paycheck, it is helpful to first find the total cost of the benefit over a full year. We can do this by multiplying the monthly cost by the number of months in a year.<\/p>\n\n\n\n

        \n
      • Total annual cost: $149.50\/month * 12 months = $1,794<\/li>\n<\/ul>\n\n\n\n

        This $1,794 is the total taxable benefit Mark receives from this insurance policy over the course of one year.<\/p>\n\n\n\n

        4. Determine the Taxable Benefit Per Pay Period<\/strong><\/p>\n\n\n\n

        Finally, we need to distribute this annual cost evenly across Mark’s pay periods. The problem states he is paid bi-weekly. There are 52 weeks in a year, which means there are 26 bi-weekly pay periods in a year (52 weeks \/ 2 weeks per period = 26 pay periods).<\/p>\n\n\n\n

          \n
        • Annual taxable benefit: $1,794<\/li>\n\n\n\n
        • Number of pay periods per year: 26<\/li>\n\n\n\n
        • Taxable benefit per pay period: $1,794 \/ 26 = $69.00<\/li>\n<\/ul>\n\n\n\n

          Therefore, $69.00 is the taxable benefit that is added to Mark’s gross pay for each bi-weekly pay period. This value matches the third option provided in the question.<\/p>\n\n\n\n

          \"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

          The Correct Answer and Explanation is: ased on the information provided in the image, the correct answer is $69.00 per pay. Explanation This problem requires a step-by-step calculation to determine the portion of the employer-paid life insurance cost that is added as a taxable benefit to each of Mark’s paychecks. Here is a detailed breakdown of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-44866","post","type-post","status-publish","format-standard","hentry","category-quiz-questions"],"_links":{"self":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/44866","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/comments?post=44866"}],"version-history":[{"count":1,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/44866\/revisions"}],"predecessor-version":[{"id":44869,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/44866\/revisions\/44869"}],"wp:attachment":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/media?parent=44866"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/categories?post=44866"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/tags?post=44866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}