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. First, determine the total annual salary excluding the holiday bonus by subtracting the bonus from the total salary: \(\$57,900 - \$1,500\).
2. Next, calculate the number of paychecks issued in a year. Since paychecks are issued twice a month, multiply the number of months in a year by 2: \$12 \times 2$.
3. Then, divide the adjusted annual salary (total salary minus bonus) by the number of paychecks to find the gross amount for each regular paycheck: \(\frac{\text{Adjusted Annual Salary}}{\text{Number of Paychecks}}\).
4. After that, consider how the holiday bonus is paid. If it is included in the total annual salary, decide whether it is distributed evenly across all paychecks or paid separately. For this problem, since the bonus is included, it is likely distributed evenly.
5. Finally, calculate the gross amount for each paycheck by dividing the total annual salary (including the bonus) by the number of paychecks: \(\frac{\$57,900}{24}\). This gives the gross amount for each paycheck.

Key Concepts

Annual Salary and Components

The annual salary is the total amount earned in one year, including all bonuses and additional pay. Understanding that the holiday bonus is part of the total $57,900 helps in calculating the regular pay portion separately if needed.

Pay Periods and Frequency

Paychecks issued twice a month means there are 24 pay periods in a year (2 per month × 12 months). Knowing the number of pay periods is essential to divide the annual salary correctly to find the gross amount per paycheck.

Gross Pay Calculation

Gross pay is the total earnings before deductions. To find the gross amount per paycheck, divide the total annual salary by the number of pay periods. This calculation provides the paycheck amount before taxes or other withholdings.