Question

Richard receives a paycheck twice each month. Here’s a copy of one of his pay statements. If there are 2 paydays per month, what is Richard’s monthly net income?

Gross pay 1135.00
Deductions
federal income tax 137.25
Social Security tax 47.67
Medicare tax 16.46
Medical insurance premium 73.00
Total deductions 274.38
Net pay 860.62

Answer 1

Richard's monthly net income is calculated as the net pay per payday (860.62) multiplied by the number of paydays (2), which is 860.62*2 = 1721.24.

Notice that the rest of the data is just supporting:
The sum of all the deductions is: 137.25+47.67+16.46+73.00 = 274.38 (total deductions)
Net pay = Gross pay - Total deductions = 1135.00 - 274.38 = 860.62