Question

Dawn is verifying the accuracy of her paycheck. She earns $13 an hour and works 40 hours each week. Her biweekly deductions are Social Security 6.2%, Medicare 1.45%, federal withholding tax $20.25, state withholding tax $12.50, and health insurance $17.47. What is her annual net pay if she is paid weekly?

Answer 1

Since Dawn earns $13 per hour and she works 40 hours each week she earns a total of:

`13\cdot40=520`

$520 per week. Now that we know that we conclude that she earns $1040 biweekly.

From this we have to substract the deductions, then she earns:

`1040-(1040)(0.062)-1040(0.0145)-20.25-12.50-17.47=910.22`

$910.22 biweekly. Now, we know that a year has 52 weeks; we need to divide this by 2 to get the total times she earns the biweekly salary, then we get 26 biweekly payments. Therefore she earns:

`910.22\cdot26=23665.72`

therefore she earns $23,665.72 annually