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?

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.