(1 point)

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?

1 answer

To calculate your gross pay including tips, follow these steps:

  1. Calculate your hourly wage for 10 hours: \[ \text{Hourly wage} = 5.75 , \text{USD/hr} \times 10 , \text{hrs} = 57.50 , \text{USD} \]

  2. Determine the number of pizzas delivered: \[ \text{Pizzas delivered} = 3 , \text{pizzas/hr} \times 10 , \text{hrs} = 30 , \text{pizzas} \]

  3. Calculate your tips for the delivered pizzas: \[ \text{Tips} = 1.50 , \text{USD/pizza} \times 30 , \text{pizzas} = 45.00 , \text{USD} \]

  4. Calculate your gross pay including tips: \[ \text{Gross pay} = \text{Hourly wage} + \text{Tips} = 57.50 + 45.00 = 102.50 , \text{USD} \]

So, your gross pay including tips is $102.50.