What is Sarah's gross pay? What is Sarah's net pay? What explains the difference between what she expected to receive and what she actually received?

Understand the Problem

The question is asking about Sarah's paystub details which include her gross pay, net pay, and the reasons for the difference between her expected and actual pay. We need to compute the net pay and explain the deductions.

Answer

1. $2500 2. $1540.81 3. Deductions total $959.19, which account for the difference.

Steps to Solve

Identify Gross Pay Sarah's gross pay is provided directly in the paystub. It is the total amount of money she earned before any deductions.

Gross Pay = $2500

Calculate Net Pay Net pay is the amount Sarah receives after deductions. We can find net pay by subtracting total deductions from gross pay.

Net Pay Calculation:

$$ \text{Net Pay} = \text{Gross Pay} - \text{Total Deductions} $$

Substituting in the values:

$$ \text{Net Pay} = 2500 - 959.19 = 1540.81 $$

Explain the Difference The difference between what Sarah expected ($2500) and what she actually received ($1540.81) is due to various deductions taken from her gross pay. These deductions include:

Federal Income Tax: $569.18
State Income Tax: $188.76
Social Security: $160.00
Medicare: $41.25

Total deductions amount to $959.19.

Sarah's gross pay is $2500.
Sarah's net pay is $1540.81.
The difference is explained by the deductions, totaling $959.19.

More Information

Deductions from paychecks are common and can include taxes and contributions to social security and Medicare, which help support government programs. Paychecks may vary due to changes in these deductions or benefits over time.

Tips

Confusing gross pay with net pay; always remember gross is before deductions and net is after.
Not accounting for all types of deductions when calculating net pay; make sure to include all listed deductions.

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