Question

Jose Ramirez worked 38 hours last week at a pay rate of $7.25 per hour. What was his gross pay? Bill Green, a storm-door salesman, sold $5,000 worth of doors and received a commission of $400. What was his rate of commission? (Remember the basic formula p = br, in which p = percentage, b = base, and r = percent.) With a base salary of $250 and a commission of 4% of all sales, compute Cindy Nelson’s salary for the following weeks: Week Base Salary Sales Commission Total Salary 1 $250.00 $890.00 ? ? 2 $250.00 $1,126.00 ? ? 3 $250.00 $975.00 ? ? 4 $250.00 $824.00 ? ? Suppose you worked 45 hours at a rate of $7.25 per hour, plus overtime pay (time-and-a-half) for any hours over 40. You also received a 2% commission on the $800 of china tableware you sold. Your paycheck lists $324.25 as your gross earnings. Is that correct? Arlene Grossman earns $235 per week. Her federal income tax is $36.00. Her FICA tax is 6.2%. Arlene is also subject to a 3% state income tax and a 1% city tax. What’s her net pay? Will Brown, who pays weekly union dues of $3.00, earns $289 per week. His federal income tax is $39.13 and his FICA tax is 6.2%. He pays a 4% state income tax, a $15.00 annual city tax, and 2% of his pay to his retirement fund. What’s his net income for the week he pays the city tax?

Answer 1

Answer:

1. 38 × $7.25 = $275.50

2. r = p ÷ b = $400 ÷ $5,000 = 0.08, or 8%

3. WEEK     COMMISSION     TOTAL

       1                $35.60           $285.60

       2               $45.04           $295.04

       3               $39.00           $289.00

       4               $32.96           $282.96

4. No, your paycheck is incorrect. Here’s why:

40 × 7.25 = $290.00 (base salary)

5 × 10.875 = 54.38 (overtime)

.02 × 800 = 16.00 (commission)

$360.38 (gross earnings)

5. Gross Pay $235.00

Income Tax $36.00

FICA $14.57 (0.062 x 235)

State Tax $7.05 (0.03 x 235)

City Tax $2.35 (0.01 x 235)

Total Deductions $59.97

Net Pay $175.03

6. Gross Pay $289.00

Income Tax $39.13

FICA $17.92

State Tax $11.56

City Tax $15.00

Retirement Fund $5.78

Union Dues $3.00

Total Deductions $92.39

Net Pay $196.61

Explanation:

Answer 2

Answer:

Jose Ramirez worked 38 hours last week at a pay rate of $7.25 per hour. What was his gross pay?

• Jose Ramirez's gross pay = 38 hours x $7.25 per hour = $275.50

Bill Green, a storm-door salesman, sold $5,000 worth of doors and received a commission of $400. What was his rate of commission?

• Bill Green's commission rate = $400 / $5,000 = 8%

With a base salary of $250 and a commission of 4% of all sales, compute Cindy Nelson’s salary for the following weeks:

Week           Base Salary       Sales Commission       Total Salary

1                     $250.00                $890.00                    $1,140.00

2                    $250.00               $1,126.00                   $1,376.00

3                    $250.00                $975.00                    $1,225.00

4                    $250.00                $824.00                    $1,074.00

If I work 45 hours my salary will be

• = (40 x $7.25) + (5 x $7.25 x 1.5) + ($800 x 2%) = $290 + $54.38 + $16 = $360.38

Your paycheck lists $324.25 as your gross earnings. Is that correct?

• no, it should be $360.38

Arlene Grossman earns $235 per week. Her federal income tax is $36.00. Her FICA tax is 6.2%. Arlene is also subject to a 3% state income tax and a 1% city tax. What’s her net pay?

• = $235 - $36 - ($235 x 6.2%) - ($235 x 3%) - ($235 x 1%) = $175.03

Will Brown, who pays weekly union dues of $3.00, earns $289 per week. His federal income tax is $39.13 and his FICA tax is 6.2%. He pays a 4% state income tax, a $15.00 annual city tax, and 2% of his pay to his retirement fund. What’s his net income for the week he pays the city tax?

• = $289 - ($289 x 2%) - $39.13 - ($289 x 6.2%) - [($289 x 98%) x 4%] - $3 - $15 = $289 - $5.78 - $39.13 - $17.92 - $11.33 - $3 - $15 = $196.84