Question

Liana receives an annual salary of $60,900; she is paid bi-weekly, and his regular workweek is40 hours.a) Calculate her regular pay per payment period. b) Calculate her hourly rate of pay. c) If her overtime rate is time and a half the regular pay, calculate the overtime rate of pay.d) What is Liana's gross pay for a pay period in which she worked 2 hours overtime at timeand a half regular pay?

Answer 1

Answer: Liana receives a yearly salary of $60,900, assuming a 52 weeks a year:

(a) Her pay per pay period would be a weekly because she gets paid bi-weekly:

$\begin{gathered} P_w=\frac{\ 60,900}{52}=1,171.153846 \\ \\ \\ \\ P_w\approx\ 1,171.159 \end{gathered}$

(b) The hourly rate pay would be based on 40 hours of the work week:

$\begin{gathered} P_h=\frac{P_w}{40}=\frac{\ 1,171.159}{40}=\ 29.278846 \\ \\ \\ \\ P_h=\ 29.279 \\ \end{gathered}$

(c) Her overtime hourly pay rate is the half of the regular pay rate, which is:

$\begin{gathered} P_{overtime}=\frac{1}{2}P_h=\frac{1}{2}(\ 29.279)=\ 14.63942 \\ \\ P_{overtime}=\ 14.639 \end{gathered}$

(d) Liana's gross pay for a pay period in which she worked 2 hours overtime is:

$\begin{gathered} P=40P_h+2P_{overtime} \\ \\ P=40\times(\ 29.279)+2\times(\ 14.369) \\ \\ P=\ 1,171.159+\ 29.279=\ 1,200.438 \\ \\ P=\ 1,200.438 \end{gathered}$