Assignment: Pay
Name:
Julia Rodriguez has just secured a job as a teller at the Guardian National Bank. Use the following
information to figure out Julia’s pay.

Single, no children

Julia is paid twice a month on the 1st and the 15th. (NOTE: This is NOT the same as getting
paid every two weeks!)

The current pay period is February 1 – 14.

Julia is on salary and earns $26,000 per year.

She has medical benefits and a retirement package.
Julia’s paycheck deductions include:
4.2% Social Security
1.45% Medicare
$122.05 Federal Withholding Tax
$42.27 State Withholding Tax
$42.00 Medical
$76.31 401K
Make certain to read the questions carefully! What is really being asked?
1. What is the gross dollar amount that Ms. Rodriguez receives on each paycheck stub? Show
your work.
2. What will Julia’s annual net salary? Show your work.
Yearly Gross
Paycheck Gross (remember bi-monthly!)
Social Security per paycheck
Medicare per paycheck
Federal Tax per paycheck
State Tax per paycheck
Medical per paycheck
401 per paycheck
Paycheck Net
Annual Net Income (remember bi-monthly!)
3. If Julia is paying $122.05 in Federal Withholding Taxes per paycheck, calculate what percent of
her gross earnings that equals. Show your work.
4. Julia is contributing $76.31 to her 401K plan. What percentage is that of her gross earnings?
Show your work.
5. Julia’s job is in a raise freeze … that means that she can’t get a raise until the freeze is lifted.
However, she’s doing a great job and the company wants to reward her. Are there any ways
that the company could reward here without increasing her Gross Salary? Explain.
Calculating percentages:
The equation can be put up as follows:
(Given amount Divided by Total amount) x100 = %
Or you can do it by multiplying the number you have, by the percentage you are after so:
If you want to know 29% of 352 you would do 352 x 0.29 = 102.08
The simplest way to calculate percentage is to divide the given amount by the total amount
and then multiplying the answer by 100 to get the percentage of the given amount with
respect to the total amount.