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Payroll Clerk

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AVG. SALARY

$55,070

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EDUCATION

High school (GED) +

Real-Life Activities

Real-Life Math -- Solution

You are a payroll officer for an automotive parts manufacturer. You are currently working out the pay for Ron, a newly hired engineer. This is what you calculate:

1. How much money does Ron have left at the end of the year after he has paid his taxes?

Ron's gross income: $34,000 per year
Taxes: 20 percent of his gross income
Net income = $34,000 - ($34,000 x 0.20)
Net income = $34,000 - $6,800
Net income = $27,200

After taxes, Ron has $27,200.

2. If Ron is paid once a month, what amount do you write his paycheck for (after the taxes have been deducted)?

If he is paid once a month, he receives 12 paychecks.
$27,200 / 12 = $2,266.67

Ron will take home $2,266.67 each month.


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