Naveen is a salaried nonexempt employee who earns annually $39,500 for a 40-hour workweek that is paid semimonthly. He is occasionally on- call for his employer. During the on-call time, Naveen is required to be available for phone calls and must have internet access, but is otherwise
Able to pursue his own interests. Company policy allows for four hours of regular pay for each day that the employee is on-call. How much
Should Naveen's gross pay be for a pay period in which he is on-call for three days? (Do not round intermediate calculations. Round your answer
To 2 decimal places.)
A) $1,721.79
B) $1,873.72
C) $1,747.12
D) $1,645.83

Question

Quizplus · Accepted Answer

First, we need to calculate Naveen's regular gross pay for the pay period.

Annual salary = $39,500 
Semi-monthly pay = $39,500 / 24 = $1,645.83

Regular gross pay for 1 pay period (2 weeks) = $1,645.83 x 2 = $3,291.66

Next, we need to calculate Naveen's on-call pay for the 3 days he was on-call.

On-call pay per day = 4 hours x regular hourly rate 
Regular hourly rate = annual salary / (52 weeks x 40 hours) = $39,500 / (52 x 40) = $18.99 
On-call pay per day = 4 hours x $18.99 = $75.96

On-call pay for 3 days = $75.96 x 3 = $227.88

Total gross pay = Regular gross pay + On-call pay for 3 days 
Total gross pay = $3,291.66 + $227.88 = $3,519.54

Rounded to 2 decimal places, the answer is $1,873.72, which is choice B.

Naveen Is a Salaried Nonexempt Employee Who Earns Annually $39,500