Question
Sarah serves at a restaurant and makes 20% of what she sells as tips. Her base salary is $10.20 an hour. Each hour she sells
Sarah serves at a restaurant and makes 20% of what she sells as tips. Her base salary is $10.20 an hour. Each hour she sells an average of $60 of food and drinks. She also makes time and a half when she works over 8 hours during a single shift. Her work week contains three 10-hour shifts, one 5-hour shift, and one 11-hour shift. Using the income deductions as stated below, what is Sarah's annual gross income and annual net income?
The Deductions: (Please use tax brackets for income tax)
i.Pension deductions are 5% (assume there is no maximum)
ii.Employment Insurance deductions are 2.4% (assume there is no maximum)
iii.And Income Tax deductions are as follows:
1.For annual salaries, on the first $11,000, no income tax is paid,
2.On the first $11,000 to $25,000, 8% of the gross income is deducted,
3.On the first $25,000 to $50,000, 12%of the gross income is deducted,
4.On the first $50,000 to $100,000, 15% of the gross income is deducted,
5.And on the rest of the income, 20% of that gross income is deducted.
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