Math Problem Statement

Complete the earnings statement table and calculate deductions and net pay based on given gross pay and tax percentages.

Solution

Let’s break down the missing calculations based on the given information and deductions to complete the earnings statement.

Details:

  1. Earnings:

    • Regular Hours: 80 hours at $13/hour = $1,040.00.
    • Overtime Hours: 5 hours at $19.50/hour = $97.50.
    • Total Earnings (Gross Pay) = $1,040.00 + $97.50 = $1,137.50.
  2. Deductions:

    • Federal Tax: 15% of Gross Pay: 0.15×1,137.50=170.630.15 \times 1,137.50 = 170.63 (already provided).
    • State Tax: 7% of Gross Pay: 0.07×1,137.50=79.630.07 \times 1,137.50 = 79.63.
    • Social Security: 6.2% of Gross Pay: 0.062×1,137.50=70.530.062 \times 1,137.50 = 70.53.
    • Medicare: 1.45% of Gross Pay: 0.0145×1,137.50=16.490.0145 \times 1,137.50 = 16.49.
  3. Total Deductions: Add all the deductions:
    170.63+79.63+70.53+16.49=337.28170.63 + 79.63 + 70.53 + 16.49 = 337.28.

  4. Net Pay: Subtract total deductions from gross pay:
    1,137.50337.28=800.221,137.50 - 337.28 = 800.22.

Completed Chart:

DESCRIPTIONHOURSRATEAMOUNTDEDUCTIONSAMOUNT
Regular80$13.00$1,040.00Federal Tax$170.63
Overtime5$19.50$97.50State Tax$79.63
Total Earnings$1,137.50Social Security$70.53
Medicare$16.49
Total Deductions$337.28
Gross Pay$1,137.50Net Pay$800.22

Recap:

  • Gross Pay: $1,137.50
  • Total Deductions: $337.28
  • Net Pay: $800.22

Would you like a deeper breakdown or further assistance?

Questions:

  1. How would different tax rates (e.g., higher Social Security or Medicare) impact Net Pay?
  2. What if overtime was calculated as double-time instead of time-and-a-half?
  3. How would pre-tax deductions, such as health insurance, influence Gross Pay and Net Pay?
  4. What would the outcome look like for varying work hours (e.g., 100 regular hours, no overtime)?
  5. How does the year-to-date (YTD) calculation relate to this period's deductions?

Tip: Always confirm tax rates and brackets for accuracy when calculating payroll!

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Math Problem Analysis

Mathematical Concepts

Payroll Calculations
Percentages
Subtraction
Basic Arithmetic

Formulas

Gross Pay = Regular Earnings + Overtime Earnings
Federal Tax = Gross Pay × Federal Tax Rate
State Tax = Gross Pay × State Tax Rate
Social Security = Gross Pay × Social Security Rate
Medicare = Gross Pay × Medicare Rate
Total Deductions = Sum of All Deductions
Net Pay = Gross Pay − Total Deductions

Theorems

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Suitable Grade Level

Grades 9-12