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?
Annual Gross = 24 * 1600 = $38400.
Biweekly Gross = 38600/26 = 1476.92
Correction:
Biweekly Gross = 38400/26 = 1476.92
To calculate Mary Jo's new biweekly gross earnings, we first need to understand the difference between semimonthly and biweekly pay schedules.
A semimonthly pay schedule means employees are paid twice a month on specific dates, such as the 15th and the last day of the month. In this case, Mary Jo receives $1,600 semimonthly.
A biweekly pay schedule, on the other hand, means employees are paid every two weeks. This can result in 26 pay periods in a year instead of the usual 24 in a semimonthly schedule.
To find Mary Jo's new biweekly gross earnings, we can use the following formula:
New Biweekly Gross Earnings = (Semimonthly Gross Earnings x Number of Pay Periods) / Number of Weeks
For a biweekly pay schedule, there are 26 pay periods in a year, and since there are 52 weeks in a year, the number of weeks is 26 / 2 = 13.
Let's calculate Mary Jo's new biweekly gross earnings:
New Biweekly Gross Earnings = ($1,600 x 26) / 13
New Biweekly Gross Earnings = $3,200 / 13
New Biweekly Gross Earnings ≈ $246.15
Therefore, Mary Jo's new biweekly gross earnings will be approximately $246.15.