Question

Sarah serves at a restaurant and makes 20% of what she sells as tips. Her base salary is $10.20an hour. Each hour she sells an average of $60 of food and drinks. She also makes time and a half when she works over 8 hours during a single shift. Her work week contains three 10-hour shifts, one 5-hour shift, and one 11-hour shift. Using the same income deductions as stated in the previous question, what is Sarah’s annual gross income and annual net income.

Answer 1

Sara works 46 hours per week

9 hours are overtime and 37 hours are regular time

pay rate at time and a half: 10.20∗1.5=15.30

regular hours plus overtime pay

37∗10.20=377.40

9∗15.30=137.70

Income due to tips

Total hours worked∗60per hour∗20%

46∗60∗.20=552

Weekly Income=Hourly income + tips

Weekly Income=377.40+137.70+552.00

Weekly Income=1067.10

Annual income=Weekly income∗52

Annual income=55489.20