Offer to compensate her for the loss in tax benefit

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Reference no: EM131027140

Suppose that a worker received $56,000 in wage at a job that also provides health insurance. A health insurance policy costs $7,000. The employee is considering moving to a job without health insurance at which she would have to purchase health insurance on her own. (Prices would still be the same, $7,000). Suppose she is in the 15% tax bracket at both jobs.

At least how much in salary would the new job have to offer to compensate her for the loss in tax benefit when she moves to the new job? Show all work to justify the answer.

Reference no: EM131027140

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