Question

Rachel receives employer-provided health insurance. The employer's cost of the health insurance is $6,000 annually. What is her employer's after-tax cost of providing the health insurance, assuming that the employer's marginal tax rate is 21 percent and the employer is profitable

Answer 1

Based on the cost of Rachel's health insurance to the employer, the employer's after-tax cost is $4,740.

How much is the health insurance after-tax cost?

This can be found as:

= Before tax cost of health insurance x (1  - marginal tax rate)

Solving gives:

= 6,000 x (1 - 21%)

= 6,000 x 0.79

= $4,740

Find out more on after-tax costs at https://brainly.com/question/15052097.

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