Question

net pay worksheet – calculate the net pay for each situation below.

1. sandra earns $13.50/hour and works 32 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

1. madison earns $11.50/hour and works 25 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

Explanation:

Problem 1: Sandra's Net Pay Calculation

Step 1: Calculate Gross Pay

Gross pay is hourly rate multiplied by hours worked.
$13.50 \times 32 = 432$

Step 2: Calculate Each Deduction

• Federal Tax: $15\%$ of $432$ = $0.15 \times 432 = 64.8$
• Social Sec: $6.2\%$ of $432$ = $0.062 \times 432 = 26.784$
• Medicare Tax: $1.45\%$ of $432$ = $0.0145 \times 432 = 6.264$
• State Tax: $4\%$ of $432$ = $0.04 \times 432 = 17.28$
• Pension: $3\%$ of $432$ = $0.03 \times 432 = 12.96$

Step 3: Total Deductions

Sum all deductions:
$64.8 + 26.784 + 6.264 + 17.28 + 12.96 = 128.088$

Step 4: Calculate Net Pay

Net pay = Gross pay - Total deductions
$432 - 128.088 = 303.912$

Step 1: Calculate Gross Pay

Gross pay is hourly rate multiplied by hours worked.
$11.50 \times 25 = 287.5$

Step 2: Calculate Each Deduction

• Federal Tax: $15\%$ of $287.5$ = $0.15 \times 287.5 = 43.125$
• Social Sec: $6.2\%$ of $287.5$ = $0.062 \times 287.5 = 17.825$
• Medicare Tax: $1.45\%$ of $287.5$ = $0.0145 \times 287.5 = 4.16875$
• State Tax: $4\%$ of $287.5$ = $0.04 \times 287.5 = 11.5$
• Pension: $3\%$ of $287.5$ = $0.03 \times 287.5 = 8.625$

Step 3: Total Deductions

Sum all deductions:
$43.125 + 17.825 + 4.16875 + 11.5 + 8.625 = 85.24375$

Step 4: Calculate Net Pay

Net pay = Gross pay - Total deductions
$287.5 - 85.24375 = 202.25625$

Answer:

(Sandra):

• Gross Pay: $\boldsymbol{\$432}$
• Total Deductions: $\boldsymbol{\$128.09}$ (rounded to two decimal places)
• Net Pay: $\boldsymbol{\$303.91}$ (rounded to two decimal places)

Problem 2: Madison's Net Pay Calculation