Lara Otero is employed by Parks Inc. She is on a single plan with a PPO annual premium of $6,009. Lara's employer pays 75% of the total cost. Her contribution is deducted from her paycheck. What is Lara's semimonthly deduction?
If Lara's company pays 75% then she pays 25%. So the total she pays in 1 year (annual) of her premium is:
$6,009.00 * 0.25 = $1502.25
So, each month she pays 1/12 of that amount or:
$1502.25 / 12 = $125.1875 or rounded to nearest penny $125.19
