Mary Jo Prenaris is an office manager with gross earnings of $1,600 semimonthly. If her company switches pay schedules from semimonthly to biweekly, what are Mary Jo’s new biweekly gross earnings?
To find Mary Jo's new biweekly gross earnings, we need to understand the difference between semimonthly and biweekly pay schedules.
Semimonthly: This pay schedule means that Mary Jo is paid twice a month, usually on the 15th and the last day of the month. In a year, she would receive 24 paychecks (12 months x 2 paychecks per month).
Biweekly: This pay schedule means that Mary Jo is paid every two weeks, typically on the same day of the week (e.g., every other Friday). In a year, she would receive 26 paychecks (52 weeks ÷ 2 weeks per paycheck).
To calculate Mary Jo's new biweekly gross earnings, we can follow these steps:
Step 1: Calculate her annual gross earnings.
Mary Jo's gross earnings per semimonthly paycheck are $1,600. Since there are 24 semimonthly paychecks in a year, the annual gross earnings can be found by multiplying $1,600 by 24:
$1,600 x 24 = $38,400
Step 2: Divide the annual gross earnings by the number of biweekly paychecks in a year.
Since there are 26 biweekly paychecks in a year, we can divide the annual gross earnings by 26 to find the new biweekly gross earnings:
$38,400 ÷ 26 = $1,476.92
Therefore, Mary Jo's new biweekly gross earnings would be $1,476.92.