IXL | Calculate gross and net income

Greg's job is to dig up and study ancient fossils. He earns $36.50 for each hour he works. Last week, Greg worked 45 hours at a dig site in Montana, and that was his only source of income.

What was Greg's gross income last week?

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question

Estelle plans parties, weddings, and other events for 37 hours each week. She earns $28.95 per hour. Her payroll taxes were $139.25 this week. Estelle doesn't have any other income.

What was Estelle's net income this week?

key idea

Gross income is your total income before payroll taxes are taken out.

Payroll taxes are money that is withheld, or held back, from your paycheck. Payroll taxes can include income tax withholdings and other taxes.

Net income is the income that is left after payroll taxes are taken out.

So, when payroll taxes are taken from gross income, what's left is net income.

solution

Step 1: Find Estelle's gross income.

Estelle worked 37 hours this week. She earned $28.95 each hour.

Multiply to find Estelle's gross income.

28.95

1,071.15

Estelle's gross income was

1,071.15

Step 2: Find Estelle's net income.

Estelle's gross income was

1,071.15

and her payroll taxes were $139.25.

Subtract to find Estelle's net income.

1,071.15

–

139.25

931.90

Estelle's net income this week was

$931.90.

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Teacher tools

Work it out

Not feeling ready yet? These can help:

VV.5Understand gross and net income

VV.2Income and payroll taxes: word problems

AA.2Add decimal numbers

AA.5Subtract decimal numbers

CC.7Multiply a decimal by a multi-digit whole number

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