Section 2.2 Benefi ts
77
Check It
Benjamin is a plumber who earns $28.92 per hour. His annual gross pay
is typically $60,160. Because he must travel for his job, his company gives him
a monthly travel allowance of $110. He also receives a $15 monthly cell phone
allowance. Benjamin also pays union dues in the amount of $32.15 a month. In
addition, he also must pay $28 per month for shop tools and supplies. Determine
the annual value of Benjamin’s job.
Checkpoint 2.2
1. Carmen is a diver for the local police department. She purchases health
insurance and dental insurance for herself and her husband. Her total
monthly premiums are $478.63. Carmen’s federal income tax rate is 15%.
Determine Carmen’s monthly tax savings by having her insurance premiums
withheld before taxes are calculated.
2. Joaquin is a materials engineer. He purchases health, dental, and vision
insurance through his employer. His monthly premiums are: $78.55 for
health insurance, $24.17 for dental insurance, and $18.85 for vision insurance.
Joaquin’s federal income tax rate is 28%. Determine his monthly tax savings
by having his insurance premiums withheld before taxes are calculated.
3. Johanna is a watchmaker with a base annual salary of $38,960. She receives
a monthly travel allowance of $85 because she travels between diff erent
stores that her employer owns. She also receives an annual stipend of $500
because she recently completed an advanced certifi cation course. Calculate
the total annual value of Johanna’s job.
4. Bernice is a meeting planner who earns an annual base salary of $53,300.
She receives a cell phone allowance of $17.50 per month. Bernice also has her
professional organization membership dues of $8.35 per month deducted
from her paycheck. What is the annual value of Bernice’s job?
5. Tommy is an insurance claims adjuster who earns an annual base salary of
$60,200. He also receives a cell phone allowance of $23 per month. Tommy
must pay for parking at his offi ce building, which costs $68.50 per month.
What is the annual value of Tommy’s job?