You are paid a modest retainer of $325 to be on call for one week each month. Your hourly pay rate is $18. You are scheduled to work 38 hours the week you are on retainer. Your employer is required to deduct a total of 22% from your pay.
a) What do you expect to earn in your gross weekly pay?
b) What is your net weekly pay?
a) Multiply 18 by 38 and add 325.
Multiply the gross pay by 0.22 to find the tax. Subtract from gross pay to find the net pay.
Thank you
You're welcome.
To calculate your gross weekly pay, you need to multiply your hourly pay rate by the number of hours you are scheduled to work, and add the retainer:
a) Gross Weekly Pay = (Hourly Pay Rate * Scheduled Hours) + Retainer
Hourly Pay Rate = $18
Scheduled Hours = 38
Retainer = $325
Gross Weekly Pay = ($18 * 38) + $325
Gross Weekly Pay = $684 + $325
Gross Weekly Pay = $1,009
So, you can expect to earn $1,009 in your gross weekly pay.
To calculate your net weekly pay, you need to deduct the total amount that your employer is required to withhold from your pay (22% in this case) from your gross weekly pay:
b) Net Weekly Pay = Gross Weekly Pay - (Gross Weekly Pay * Withholding Rate)
Gross Weekly Pay = $1,009
Withholding Rate = 22% (or 0.22)
Net Weekly Pay = $1,009 - ($1,009 * 0.22)
Net Weekly Pay = $1,009 - $221.98
Net Weekly Pay = $787.02
So, your net weekly pay would be $787.02.