You are paid $5.75/hr at your part-time job delivering pizzas. You usually earn $1.50/pizza as a tip. Your deductions are FICA (7.65%), federal tax withholding (11.2%), and state tax withholding (7.1%). If you work 10 hours and deliver 3 pizzas/hr, what is your gross pay including tips?
First, calculate your gross pay from your hourly wage:
10 hours worked x $5.75/hr = $57.50
Next, calculate your total tips earned:
3 pizzas/hr x $1.50/pizza = $4.50/hr
10 hours worked x $4.50/hr = $45
Your total gross pay including tips is:
$57.50 + $45 = $102.50