Question

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

deduction	x factor	amount
social sec	6.2%
medicare tax	1.45%
state tax	4%
pension	3%
total deductions

work:
net pay:
hint: net pay = gross pay - deductions

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

deduction	x factor	amount
social sec	6.2%
medicare tax	1.45%
state tax	4%
pension	3%
total deductions

work:
net pay:
hint: net pay = gross pay - deductions

Explanation:

Problem 3: David's Pay Calculation

Step 1: Calculate Gross Pay

Gross Pay = Hourly Rate × Hours Worked
\( \$12.00 \times 36 = \$432.00 \)

Step 2: Calculate Each Deduction

• Federal Tax: \( 15\% \) of \( \$432 \) = \( 0.15 \times 432 = \$64.80 \)
• 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:
\( 64.80 + 26.784 + 6.264 + 17.28 + 12.96 = \$128.088 \)

Step 4: Calculate Net Pay

Net Pay = Gross Pay - Total Deductions
\( 432 - 128.088 = \$303.912 \) (rounded to \$303.91)

Problem 4: Ted's Pay Calculation

Step 1: Calculate Gross Pay

Gross Pay = Hourly Rate × Hours Worked
\( \$11.25 \times 39 = \$438.75 \)

Step 2: Calculate Each Deduction

• Federal Tax: \( 15\% \) of \( \$438.75 \) = \( 0.15 \times 438.75 = \$65.8125 \)
• Social Sec: \( 6.2\% \) of \( \$438.75 \) = \( 0.062 \times 438.75 = \$27.1925 \)
• Medicare Tax: \( 1.45\% \) of \( \$438.75 \) = \( 0.0145 \times 438.75 = \$6.361875 \)
• State Tax: \( 4\% \) of \( \$438.75 \) = \( 0.04 \times 438.75 = \$17.55 \)
• Pension: \( 3\% \) of \( \$438.75 \) = \( 0.03 \times 438.75 = \$13.1625 \)

Step 3: Total Deductions

Sum all deductions:
\( 65.8125 + 27.1925 + 6.361875 + 17.55 + 13.1625 = \$130.079375 \)

Step 4: Calculate Net Pay

Net Pay = Gross Pay - Total Deductions
\( 438.75 - 130.079375 = \$308.670625 \) (rounded to \$308.67)

Answer:

s:

Problem 3:

• Gross Pay: \( \boldsymbol{\$432.00} \)
• Total Deductions: \( \boldsymbol{\$128.09} \) (rounded)
• Net Pay: \( \boldsymbol{\$303.91} \)

Problem 4:

• Gross Pay: \( \boldsymbol{\$438.75} \)
• Total Deductions: \( \boldsymbol{\$130.08} \) (rounded)
• Net Pay: \( \boldsymbol{\$308.67} \)