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 gross earnings?
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To calculate Mary Jo's new gross earnings on a biweekly pay schedule, we need to understand the difference between semimonthly and biweekly pay schedules.
Semimonthly pay schedule: Mary Jo currently receives her salary twice a month, on specific dates (for example, the 15th and 30th of each month). In a year, she receives 24 paychecks (12 months x 2 paychecks per month).
Biweekly pay schedule: Under a biweekly pay schedule, Mary Jo would receive her salary every two weeks, regardless of the day of the week. In a year, she would receive 26 paychecks (52 weeks / 2 weeks per paycheck).
To determine Mary Jo's new gross earnings on a biweekly pay schedule, we can use a simple conversion formula:
New gross earnings = (Semimonthly earnings / 24) x 26
Given that Mary Jo's current semimonthly gross earnings are $1,600, we can substitute this value into the formula:
New gross earnings = ($1,600 / 24) x 26
Now let's calculate the result:
New gross earnings = $1,600 / 24 = $66.67 (rounded to the nearest cent)
New gross earnings = $66.67 x 26 = $1,733.34 (rounded to the nearest cent)
Therefore, Mary Jo's new gross earnings on a biweekly pay schedule would be approximately $1,733.34.