A job pays an annual salary of $57,900, which includes a holiday bonus of $1500. If paychecks are issued twice a month, what is the gross amount for each paycheck?

Verified step by step guidance

1. Start by identifying the total annual salary, which is $57,900.
2. Subtract the holiday bonus of $1,500 from the total annual salary to find the salary without the bonus: $57,900 - $1,500.
3. Calculate the number of pay periods in a year. Since paychecks are issued twice a month, there are 2 paychecks per month and 12 months in a year, resulting in 2 * 12 pay periods.
4. Divide the annual salary without the bonus by the number of pay periods to find the gross amount for each paycheck.
5. The formula to use is: \( \text{Gross amount per paycheck} = \frac{\text{Annual salary without bonus}}{\text{Number of pay periods}} \).

Key Concepts

Annual Salary

The annual salary is the total amount of money earned in a year before any deductions. In this case, the job pays $57,900 annually, which includes all forms of compensation, such as bonuses. Understanding the annual salary is crucial for calculating the gross pay per paycheck.

Pay Periods

Pay periods refer to the frequency with which employees are paid. In this scenario, paychecks are issued twice a month, meaning there are 24 pay periods in a year. Knowing the number of pay periods is essential for dividing the total annual salary to find the gross amount per paycheck.

Gross Pay

Gross pay is the total earnings an employee receives before any deductions such as taxes or retirement contributions. To find the gross amount for each paycheck, the total annual salary, including bonuses, is divided by the number of pay periods. This calculation provides the amount an employee receives in each paycheck.