Question

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1. david earns $12.00/hour and works 36 hours.

determine gross pay
(hint hourly rate x hours worked)
gross pay:
deductions:
federal tax = 15% of your gross pay
social security tax = 6.2% of your gross pay
medicare tax = 1.45% of your gross pay
state tax = 4% of your gross pay
pension = 3% of your gross pay
work:
hint: net pay = gross pay - deductions
net pay:

1. ted earns $11.25/hour and works 39 hours.

determine gross pay
(hint hourly rate x hours worked)
gross pay:
deductions:
federal tax = 15% of your gross pay
social security tax = 6.2% of your gross pay
medicare tax = 1.45% of your gross pay
state tax = 4% of your gross pay
pension = 3% of your gross pay
work:
hint: net pay = gross pay - deductions
net pay:

Explanation:

Problem 3: David's Pay Calculation

Step 1: Calculate Gross Pay

Gross pay is calculated by multiplying the hourly rate by the number of hours worked. David earns $12.00 per hour and works 36 hours.

$$ \text{Gross Pay} = 12.00 \times 36 = 432.00 $$

Step 2: Calculate Each Deduction

• Federal Tax: 15% of gross pay

$$ 15\% \text{ of } 432.00 = 0.15 \times 432 = 64.80 $$

• Social Sec (Social Security Tax): 6.2% of gross pay

$$ 6.2\% \text{ of } 432.00 = 0.062 \times 432 = 26.784 $$

• Medicare Tax: 1.45% of gross pay

$$ 1.45\% \text{ of } 432.00 = 0.0145 \times 432 = 6.264 $$

• State Tax: 4% of gross pay

$$ 4\% \text{ of } 432.00 = 0.04 \times 432 = 17.28 $$

• Pension: 3% of gross pay

$$ 3\% \text{ of } 432.00 = 0.03 \times 432 = 12.96 $$

Step 3: Calculate Total Deductions

Sum up all the deductions:

$$ \text{Total Deductions} = 64.80 + 26.784 + 6.264 + 17.28 + 12.96 = 128.088 $$

Step 4: Calculate Net Pay

Net pay is gross pay minus total deductions:

$$ \text{Net Pay} = 432.00 - 128.088 = 303.912 \approx 303.91 $$

Problem 4: Ted's Pay Calculation

Step 1: Calculate Gross Pay

Ted earns $11.25 per hour and works 39 hours.

$$ \text{Gross Pay} = 11.25 \times 39 = 438.75 $$

Step 2: Calculate Each Deduction

• Federal Tax: 15% of gross pay

$$ 15\% \text{ of } 438.75 = 0.15 \times 438.75 = 65.8125 $$

• Social Sec (Social Security Tax): 6.2% of gross pay

$$ 6.2\% \text{ of } 438.75 = 0.062 \times 438.75 = 27.1925 $$

• Medicare Tax: 1.45% of gross pay

$$ 1.45\% \text{ of } 438.75 = 0.0145 \times 438.75 = 6.361875 $$

• State Tax: 4% of gross pay

$$ 4\% \text{ of } 438.75 = 0.04 \times 438.75 = 17.55 $$

• Pension: 3% of gross pay

$$ 3\% \text{ of } 438.75 = 0.03 \times 438.75 = 13.1625 $$

Step 3: Calculate Total Deductions

Sum up all the deductions:

$$ \text{Total Deductions} = 65.8125 + 27.1925 + 6.361875 + 17.55 + 13.1625 = 130.079375 $$

Step 4: Calculate Net Pay

Net pay is gross pay minus total deductions:

$$ \text{Net Pay} = 438.75 - 130.079375 = 308.670625 \approx 308.67 $$

Final Answers

Problem 3:

• Gross Pay: $432.00
• Total Deductions: $128.09 (rounded)
• Net Pay: $303.91

Problem 4:

• Gross Pay: $438.75
• Total Deductions: $130.08 (rounded)
• Net Pay: $308.67

(Note: Deduction amounts can be rounded to two decimal places as is standard for currency.)

Answer:

Problem 3: David's Pay Calculation

Step 1: Calculate Gross Pay

Gross pay is calculated by multiplying the hourly rate by the number of hours worked. David earns $12.00 per hour and works 36 hours.

$$ \text{Gross Pay} = 12.00 \times 36 = 432.00 $$

Step 2: Calculate Each Deduction

• Federal Tax: 15% of gross pay

$$ 15\% \text{ of } 432.00 = 0.15 \times 432 = 64.80 $$

• Social Sec (Social Security Tax): 6.2% of gross pay

$$ 6.2\% \text{ of } 432.00 = 0.062 \times 432 = 26.784 $$

• Medicare Tax: 1.45% of gross pay

$$ 1.45\% \text{ of } 432.00 = 0.0145 \times 432 = 6.264 $$

• State Tax: 4% of gross pay

$$ 4\% \text{ of } 432.00 = 0.04 \times 432 = 17.28 $$

• Pension: 3% of gross pay

$$ 3\% \text{ of } 432.00 = 0.03 \times 432 = 12.96 $$

Step 3: Calculate Total Deductions

Sum up all the deductions:

$$ \text{Total Deductions} = 64.80 + 26.784 + 6.264 + 17.28 + 12.96 = 128.088 $$

Step 4: Calculate Net Pay

Net pay is gross pay minus total deductions:

$$ \text{Net Pay} = 432.00 - 128.088 = 303.912 \approx 303.91 $$

Problem 4: Ted's Pay Calculation

Step 1: Calculate Gross Pay

Ted earns $11.25 per hour and works 39 hours.

$$ \text{Gross Pay} = 11.25 \times 39 = 438.75 $$

Step 2: Calculate Each Deduction

• Federal Tax: 15% of gross pay

$$ 15\% \text{ of } 438.75 = 0.15 \times 438.75 = 65.8125 $$

• Social Sec (Social Security Tax): 6.2% of gross pay

$$ 6.2\% \text{ of } 438.75 = 0.062 \times 438.75 = 27.1925 $$

• Medicare Tax: 1.45% of gross pay

$$ 1.45\% \text{ of } 438.75 = 0.0145 \times 438.75 = 6.361875 $$

• State Tax: 4% of gross pay

$$ 4\% \text{ of } 438.75 = 0.04 \times 438.75 = 17.55 $$

• Pension: 3% of gross pay

$$ 3\% \text{ of } 438.75 = 0.03 \times 438.75 = 13.1625 $$

Step 3: Calculate Total Deductions

Sum up all the deductions:

$$ \text{Total Deductions} = 65.8125 + 27.1925 + 6.361875 + 17.55 + 13.1625 = 130.079375 $$

Step 4: Calculate Net Pay

Net pay is gross pay minus total deductions:

$$ \text{Net Pay} = 438.75 - 130.079375 = 308.670625 \approx 308.67 $$

Final Answers

Problem 3:

• Gross Pay: $432.00
• Total Deductions: $128.09 (rounded)
• Net Pay: $303.91

Problem 4:

• Gross Pay: $438.75
• Total Deductions: $130.08 (rounded)
• Net Pay: $308.67

(Note: Deduction amounts can be rounded to two decimal places as is standard for currency.)