Question

What is the net pay per pay period if the annual pay is $112,000 and there are 15 days of deductions at a rate of 28%?

1) $5,040
2) $7,000
3) $1,960
4) $112,000

Answer 1

To calculate the net pay per pay period, divide the annual pay by the number of pay periods and subtract the deductions. The net pay per period is $3,103.07.

Step-by-step explanation:

To calculate the net pay per pay period, we need to determine the gross pay and subtract the deductions. First, we divide the annual pay by the number of pay periods in a year. In this case, let's assume there are 26 pay periods in a year. So, the gross pay per period would be $112,000 / 26 = $4,307.69.

Next, we calculate the deductions by multiplying the gross pay per period by the deduction rate. The deductions amount to $4,307.69 * 28% = $1,204.62.

Finally, we subtract the deductions from the gross pay to get the net pay per pay period. The net pay per period would be $4,307.69 - $1,204.62 = $3,103.07.

Therefore, the correct answer is option 3) $1,960.