Monthly Premium Benefit Cost Per Pay Period Calculator
This calculator is designed to help you determine how much you will be paying for your monthly health insurance premium benefit on each pay period.
This is crucial for budgeting and financial planning, as health insurance is often one of the most significant expenses for many individuals and families.
How it works:
Monthly Premium Cost: This is the amount charged by your health insurance provider every month for your selected plan.
Employer Contribution: If you are fortunate enough to work for an employer that contributes towards your health insurance premium, you can select between a fixed amount or a percentage. This contribution will be deducted from your monthly premium cost to calculate the annual cost.
Percentage: If your employer contributes a specific percentage of the premium, select this option and input the contribution rate.
Fixed Amount: If your employer contributes a fixed dollar amount every month, choose this option and input the fixed amount.
Pay Periods per Year: This is how many times you receive a paycheck in a year. For instance, if you're paid bi-weekly, there are 26 pay periods in a year.
Total Cost per Pay Period: This is the amount you will need to allocate from each paycheck to cover the annual cost of your health insurance premium.
Cost per Pay Period (Pre-taxed at 20%*): If your health insurance premiums are pre-taxed, they can be deducted from your wages before taxes are calculated, potentially leading to savings. The calculator assumes a pre-tax reduction rate of 20%, but remember that the actual tax savings can vary based on your tax bracket.
Disclaimer - This calculator offers an estimation and should be used as a guide. Financial decisions should be made after consulting with a financial advisor or your HR department to understand the specifics of your health insurance and tax situation. Always check the latest tax laws and regulations that might impact pre-tax deductions.