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The Director of Nursing (DON) in a long-term care facility receives a gross yearly salary of $67,000. The DON is married with three dependents and has enrolled in the company's insurance family plan. The long-term care facility employees receive paychecks every other week. a. Calculate the gross salary per pay period. b. Compute the net salary per pay period.

User Revan
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a. To calculate the gross salary per pay period, we need to divide the yearly salary by the number of pay periods in a year:

Gross salary per pay period = Yearly salary / Number of pay periods per year

Since there are 26 pay periods in a year (bi-weekly paychecks), we have:

Gross salary per pay period = $67,000 / 26 = $2,576.92

Therefore, the DON's gross salary per pay period is $2,576.92.

b. To compute the net salary per pay period, we need to take into account federal and state taxes, Social Security, and Medicare deductions, as well as any other pre-tax or post-tax deductions, such as health insurance premiums or retirement contributions.

Assuming a standard tax withholding rate of 20%, Social Security and Medicare deductions of 7.65%, and health insurance premiums of $200 per pay period, we can calculate the net salary per pay period as follows:

Net salary per pay period = Gross salary per pay period - Taxes - Social Security and Medicare - Health insurance

Net salary per pay period = $2,576.92 - ($2,576.92 x 0.20) - ($2,576.92 x 0.0765) - $200

Net salary per pay period = $2,576.92 - $515.38 - $197.02 - $200

Net salary per pay period = $1,664.52

Therefore, the DON's net salary per pay period is $1,664.52.

User Ushi
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