bob works 32 hours a week and gets paid £12.50 per hour. 20% of his pay is income tax. he also pays national insurance, and so is left with £280 after tax.
how much does he pay for national insurance? how much is this of his salary before tax?
THANK GOD THATS WHAT I PUT IN THE TEST
gross pay = 32*12.50 = £ 400
net pay = 80% of 400 = £ 320
insurance + 280 = 320
insurance = £ 40
rate = 40/400 = 10%
To find out how much Bob pays for national insurance, we need to determine his income before tax. Let's calculate that first:
Bob's hourly wage: £12.50
Number of hours worked per week: 32
Salary before tax = (Hourly wage) x (Number of hours)
Salary before tax = £12.50 x 32
Salary before tax = £400
Now that we know Bob's salary before tax is £400, we can find out how much he pays for income tax, which is 20% of his pay:
Income tax = (20/100) x (Salary before tax)
Income tax = (20/100) x £400
Income tax = £80
To find out the amount of money left after tax, we subtract the income tax from the salary before tax:
Salary after tax = Salary before tax - Income tax
Salary after tax = £400 - £80
Salary after tax = £320
We're given that Bob is left with £280 after tax, so we can find out how much he pays for national insurance:
National insurance payment = Salary after tax - Amount left after tax
National insurance payment = £320 - £280
National insurance payment = £40
Finally, to calculate how much the national insurance payment is as a percentage of his salary before tax, we can use the following formula:
National insurance percentage = (National insurance payment / Salary before tax) x 100
National insurance percentage = (£40 / £400) x 100
National insurance percentage = 0.1 x 100
National insurance percentage = 10%
Therefore, Bob pays £40 for national insurance, which is 10% of his salary before tax.