Employee Benefits

Employee Benefits Section 6-4

Employee Benefits • 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

Employee Benefits • Paid Vacation Often times, companies will increase vacation time with seniority. →The longer you work there, the more vacation time you receive.

Finding Vacation Time • Make a chart listing the number of years worked compared to the number of vacation days • Find a pattern between the two values • 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 Worked Vac. Days 0 3 1 5 2 7 3 9

Yrs Worked Vac. Days • Let x = # of years • worked • Pattern: • → Increase by 2 every time • y = (increase)x + (initial vac. days) • y = 2x + 3 0 3 1 5 2 7 3 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: Vac. Days: Equation: y = 2x + 5 0 1 2 3 7 9 11 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

Classwork • 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. ½ Yrs Worked: Vac. Days: Equation: y = 2x + 3 x = every 6 month period 0 1 2 3 5 7 9 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. Yrs Worked: Vac. Days: Equation: y = 3x + 2 x = years worked there 0 1 2 3 5 8 11 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: Vac. Days: Equation: y = 2x To earn 18 days? 0 1 2 3 2 4 6 0 → 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: Vac. Days: Equation: y = 2 After 4 years? 0 1 2 3 2 4 8 0 x → 16 years

Healthcare Section 6-4

What is Healthcare? • 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?

Healthcare Equation 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)

P • C = I • 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? How much do you contribute per year? Healthcare cost for the year is $5,720 P = 0.20 I = $1,144 0.20 C = 1,144 C = $5,720

P • C = I • 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? Total Cost of your healthcare is $6,240. Your employer would pay 6,240 – 936 = $5,304 P = 0.15 I = $936 0.15 C = $936 C = $6,240

P • C = I • 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? I = 2,496 P = 0.138 C = 18,096 Total Coverage = Company cost + Individual cost Individual annual cost = 48 * 52 P (18,096) = 2496 = 1300 * 12 = 2,496 + 2,496 P = .138 = 18,096 Your contribution is 13.8%

Classwork • Complete worksheet on healthcare

P • C = I 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

P • C = I 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? Step 1) Find I → ($52)(12 months) → $624 3) 0.10 • C = 624 C = $6,240 Employer Contributes: Step 2) Find P = 6,240 - 624 → P = 0.10 = $5,616

P • C = I 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 14,088P = 1,464 P = .104 P = 10.4% Step 2) Find C → Employer + Individual = 1052* 12 + 1464 = 14,088

Vacation Days 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 Vac. Days y = 3x + 4 25 = 3x + 4 0 4 21 = 3x 1 7 x = 7 2 10 She will reach the maximum vacation time after 7 years 3 13

Employee benefits Pension and Unemployment

Pension • 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: • Find 1.5% of the average: • Multiply this amount by length of employment = $88,900 + $92,200 $96,000 + $98,000 + $102,000 = $477,100 = $477,100 / 5 = $95,420 $95,420 $1,431.30 = (95,420) (0.015) = 1,431.3 = (1,431.30)(25) = 35,782.5 Your annual pension will be $35,782.50

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. • Average Salary: • 2.1% of average salary: • Pension: $70,000 $1,470 $29,400

Unemployment • 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? • Find the total earnings for both quarters: • Divide this sum by 26 (26 weeks): • Multiply this by 60%: $18,824 $724 = $9,024 + $9,800 = $18,824 = $18,824 / 26 = ($724) (0.60) = $724 = $434.4 Weekly unemployment check is $434.40

Classwork • Complete worksheet on unemployment and healthcare

Employee Benefits