Question

Given the pay rate, hours worked, tax deductions, and social security deduction, determine the gross earnings, group health insurance (assuming 15% of gross earnings), pension deduction (assuming 6.5% of gross earnings), total deductions, and net pay.

Answer 1

Explanation: Lets assume that he earns $21 per hour

If he works 40 hours per week he earns = 40×21 =$840

At the end of the fourth week which is a month = 840×4 =$3360

Hence his gross payment shall be = $3360 I.e payment before any deduction was made.

He pays 15% for health insurance = (15×3360)÷100

50400/100 =$504

He pays 6.5% for pension = ( 6.5×3360 )÷100

21840÷100 = $218.4

Total deduction = 504+218.4 = $722.4

Net payment is the payment made after deduction has been made

3360-722.4 =$2637.6