7. Income and Taxation

Worksheet

1

The normal pay rate is \$13.40 per hour.

a

What is the time-and-a-half rate?

b

What is the double time rate?

2

A call centre worker is paid \$20 per hour for a normal 37-hour week, and time-and-a-half for each hour worked thereafter. Calculate his income for a week in which he works:

a

27 hours

b

45 hours

3

Marge works for 20 hours each week at a part-time rate of \$19 per hour and also does a 6-hour Sunday shift at time-and-a-half. Calculate her weekly wage.

4

For an hourly rate of \$30, calculate the income earned for working:

a

35 hours at normal rates and 6 hours at time-and-a-half.

b

28 hours at normal rates and 5 hours at double time.

c

29 hours at normal rates, 9 hours at time-and-a-half and 7 hours at double time.

d

8 hours at time-and-a-half and 7 hours at double time.

5

Avril works part-time as a bar attendant and is paid \$21.89 per hour. She is rostered to work 6 hours each day from Tuesday to Friday.

If Avril works over her rostered hours from Monday to Friday, she is paid time-and-a-half for the first 2 hours of overtime and double time for any further overtime. Any work she does on the weekend is paid at double time.

Start time | Finish time | |
---|---|---|

Tuesday | 11:00 am | 5:00 pm |

Wednesday | 11:00 am | 7:00 pm |

Thursday | 11:00 am | 6:00 pm |

Friday | 11:00 am | 8:00 pm |

Saturday | 1:00 pm | 5:00 pm |

a

State the days that Avril will be paid double time.

b

Complete the following table:

Hours worked for normal pay | Hours worked for time-and-a-half | Hours worked for double time | |
---|---|---|---|

Tuesday | |||

Wednesday | |||

Thursday | |||

Friday | |||

Saturday |

c

Calculate Avril's weekly wage for the timesheet provided.

6

For each week, Christa earns a wage of \$18 per hour for the first 23 hours, time-and-a-half for the next 9 hours, and double time after that. Calculate her weekly income if she works:

a

18 hours per week.

b

27 hours per week.

c

37 hours per week.

7

Workers employed on a casual basis in the hospitality industry are entitled to a penalty rate called a casual loading, which is 25\% of their normal pay. Carl works on a casual basis as a cook, and earns \$20.35 per hour. In a particular week, he works 31 hours.

a

Calculate his normal pay for 31 hours.

b

Calculate Carl's casual loading.

c

Calculate his total pay for the week.

8

Stavros earns \$910 per week. Calculate his normal hourly rate of pay if he works:

a

34 hours at normal rates and 10 hours at time-and-a-half.

b

35 hours at normal rates and 10 hours at double time.

c

34 hours at normal rates, 7 hours at time-and-a-half and 6 hours at double time.

9

A truck driver earns \$1369.00 for a 37-hour week, and then double time for any extra hours worked on top of that.

a

What is the truck driver's hourly rate?

b

What would he earn for a 42-hour week?

10

Calculate the equivalent number of hours worked at normal pay for working:

a

33 hours at normal rates and 10 hours at time-and-a-half.

b

37 hours at normal rates and 5 hours at double time.

c

21 hours at normal rates, 10 hours at time-and-a-half and 8 hours at double time.

d

7 hours at time-and-a-half and 10 hours at double time.

11

Buzz needs to earn \$381.15 this week to cover his expenses. His normal hourly rate is \$12.10 and he is rostered to work 24 normal hours from Monday to Friday.

a

How much will he earn from Monday through to Friday?

b

Calculate the amount he needs to earn on Saturday.

c

Hence, calculate how many hours Buzz must work on Saturday, where he will earn time-and-a-half.

12

Calculate the value of a 7\% annual bonus, for an income of:

a

\$88\,000 per annum.

b

\$7000 per month.

c

\$3900 per fortnight.

d

\$1500 per week.

13

As an office manager, Isabelle earns a salary of \$64\,968. Each year, she is paid a bonus of 8.5\% of one month's income. Calculate Isabelle’s annual bonus.

14

An employee is given a 13\% bonus on his annual income. This bonus amounted to \$19\,000. Calculate his annual income.

15

Dave receives an annual bonus of \$363.12. If Dave’s bonus is 6\% on one month’s income, find his annual salary.

16

Aaron is paid two bonuses each year. The first is mid-way through the year in June and the second is at Christmas time. The Christmas bonus is always double the amount of the mid-year bonus. If John is paid a total of \$2448 in bonuses for the year, find his mid-year bonus.

17

Tom is paid two bonuses each year. The first is mid-way through the year in June and the second is at Christmas time. The Christmas bonus is always 15\% more than the amount of the mid-year bonus. If Tom is paid a total of \$877 in bonuses for the year, find his mid-year bonus.

18

Isabelle is a salesperson. Each quarter, she is paid a bonus if sales are over \$20\,000. Her bonus will be 5\% of any of the sales made after \$20\,000 for the quarter. The following table summarises Isabelle's sales for the year:

Jan to Mar | Apr to Jun | July to Sept | Oct to Dec | |
---|---|---|---|---|

Sales | \$22\,280 | \$17\,476 | \$2702 | \$31\,085 |

a

In which quarter(s) will Isabelle be paid a bonus?

b

Calculate Isabelle's total bonuses for the year.

19

An advertising executive is offered a bonus in the form of a percentage of the increase in sales of the product. If sales increase by \$173\,950 and the executive receives a bonus of \$11\,654.65, what was the percentage rate of his bonus, correct to one decimal place?

20

Lisa and Roald work in different companies, but each is paid the same salary of \$78\,498.

In Lisa’s company, employees are paid an annual leave loading of 17.5\% of 4 weeks pay but are not paid a bonus.

In Roald’s company, employees are paid an annual bonus of 15\% of one month's pay, but no leave loading.

Assume that there are 52 weeks in a year.

a

Calculate how much Lisa earns from leave loading in a year.

b

Calculate how much Roald earns from his bonus in a year.

c

Which of them earn more each year?

21

Calculate the total allowance for the following workers:

a

A worker receives an allowance of \$0.50 per hour for performing unpleasant work. He works 37 hours.

b

A worker receives a dust allowance of 90 cents per hour and a hot work allowance of 60 cents per hour. He works 38 hours.

c

A miner receives allowances of \$1.40 per hour for working in confined spaces, 70 cents per hour for being exposed to potentially toxic substances during work, and 80 cents per hour for the noise caused by general mining operations. He works 38 hours.

22

Neil, a miner, is paid \$25 per hour. He earns an extra \$5 per hour when working underground. Calculate his weekly wage if he works for 39 hours, 15 of which were underground.

23

Dave, a delivery driver, is paid \$10 per hour, plus a uniform allowance of \$15 per week, \$92 per week for depreciation on his car, and a travel allowance of 37 cents per kilometre. Calculate his weekly income, if he worked 28 hours and travelled 1284 \text{ km}.

24

Bob works as a receptionist and is paid \$22.09 per hour for a 38-hour week. He holds a first-aid certificate and receives a first aid allowance each week of 1.5\% of the normal weekly pay. Because he is required to wear a uniform, he is paid an allowance of \$3.55 per week for laundry expenses.

a

Calculate Bob’s normal weekly pay without allowances.

b

Calculate Bob’s gross weekly pay including allowances.

25

Maria, a window cleaner, receives a height allowance of \$0.60 per hour. If her normal hourly rate is \$18.10, find:

a

Her normal weekly wage, assuming a 37-hour working week.

b

Her gross weekly income.

c

Her holiday loading at 17.5\% of 4 weeks' income.

d

The amount she will receive when she takes her 4 weeks' holiday.

e

Her annual gross income.

26

James, a pest inspector, is paid \$17.00 per hour. In addition, he is paid allowances of \$1.50 per hour for being exposed to potentially toxic substances, 50 cents per hour for exposure to potentially dangerous insect bites and 70 cents per hour for wet work. Assuming a 35-hour working week, find:

a

His weekly wage before allowances.

b

His gross weekly income.

c

His holiday loading at 17.5\% of 4 weeks' normal pay.

d

The total amount he will receive when he takes his 4 weeks' holiday.

e

His annual gross income.

27

Jack is a miner. He is paid an hourly rate of \$22.85 (which does not include any allowances). Jack holds a first aid certificate and is entitled to the following allowances:

Amount | |
---|---|

Mining industry allowance | \$0.82 \text{ per hour} |

First aid allowance | \$0.44 \text{ per hour, up to a maximum of }\$16.75 \text{ a week} |

Underground allowance | \$1.54 \text{ per hour} |

Remote camp allowance | \$15.66 \text{ per day} |

a

Will Jack reach the maximum amount of first aid allowance if he works a 38-hour week?

b

Find Jack’s weekly pay if he works a 38-hour week with 12 of those hours spent underground and 2 days spent at a remote camp.

28

Robert works at a vehicle manufacturing plant. His normal rate of pay is \$24.42 per hour. In addition, Robert is paid a toxic substances allowance when he works with paint.

Toxic substances allowance |
---|

8.5\% \text{ of the normal rate of pay for the first 2 hours of working with substance that day} |

60\% \text{ of the normal rate of pay for any additional hours in a single day} |

Calculate Robert's gross income during an 8-hour working day where he spends 3 hours working with paint.

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