You are paid $5.75/hr at your part-time job deliverying pizzas. You usually earn $1.50/pizza as a tip. Your deductions are FICA 7.65%, federal withholding 11.2% and state 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 for working 10 hours and delivering 3 pizzas per hour, we can break it down into two parts: your base pay and your tips.

  1. Base Pay: You earn $5.75 per hour. If you work for 10 hours, your base pay would be:

    \[ \text{Base Pay} = \text{Hourly Rate} \times \text{Hours Worked} = 5.75 , \text{USD/hr} \times 10 , \text{hours} = 57.50 , \text{USD} \]

  2. Tips: You earn $1.50 per pizza delivered, and you deliver 3 pizzas per hour. In 10 hours, you will deliver:

    \[ \text{Total Pizzas Delivered} = \text{Pizzas per Hour} \times \text{Hours Worked} = 3 , \text{pizzas/hr} \times 10 , \text{hours} = 30 , \text{pizzas} \]

    The total tips earned would be:

    \[ \text{Total Tips} = \text{Tip per Pizza} \times \text{Total Pizzas Delivered} = 1.50 , \text{USD/pizza} \times 30 , \text{pizzas} = 45.00 , \text{USD} \]

  3. Gross Pay: Now, combine the base pay and tips to find your gross pay:

    \[ \text{Gross Pay} = \text{Base Pay} + \text{Total Tips} = 57.50 , \text{USD} + 45.00 , \text{USD} = 102.50 , \text{USD} \]

Therefore, your gross pay including tips for 10 hours of work is $102.50.