A statement of an employee's biweekly earnings is given below.
| | Earnings | Deductions |
| :---------- | :------- | :----------------------------------------------------------- |
| Week Ended | Regular | FED. WITH. | SOC. WITH. | MED CARE. | STATE WITH. | NET PAY |
| 9/10 | $ | $98.00 | $52.88 | $12.37 | $22.54 | $667.17 |
What is the employee's gross pay?
a. $818.05
b. $830.42
c. $840.59
d. $852.96
Please select the best answer from the choices provided
Answer (2)
Calculate the total deductions by adding all individual deductions: T o t a l De d u c t i o n s = 98.00 + 52.88 + 12.37 + 22.54 = 185.79 .
Calculate the gross pay by adding the net pay and the total deductions: G ross P a y = 667.17 + 185.79 = 852.96 .
The employee's gross pay is $852.96 .
Explanation
Understanding the Problem We are given an employee's biweekly earnings statement and asked to find the gross pay. The statement includes the net pay and various deductions.
Plan of Action The gross pay is the total earnings before any deductions. To find the gross pay, we need to add the net pay and all the deductions.
Identifying the Values The net pay is given as $667.17. The deductions are Federal Withholding ($98.00), Social Security Withholding ($52.88), Medicare ($12.37), and State Withholding ($22.54).
Calculating Total Deductions First, we calculate the total deductions: T o t a l De d u c t i o n s = 98.00 + 52.88 + 12.37 + 22.54
Calculating Gross Pay T o t a l De d u c t i o n s = 185.79 Now, we calculate the gross pay by adding the net pay and the total deductions: G ross P a y = N e tP a y + T o t a l De d u c t i o n s G ross P a y = 667.17 + 185.79
Finding the Answer G ross P a y = 852.96 Therefore, the employee's gross pay is $852.96.
Examples
Understanding gross pay is essential for budgeting and financial planning. For instance, if you're saving for a car, knowing your gross income helps you estimate how much you can allocate each month. Let's say your gross monthly income is $4000, and you aim to save 15% for a $3000 down payment. That's $600 per month, meaning you'll reach your goal in just 5 months! This proactive approach ensures you stay on track and achieve your financial milestones effectively.
The employee's gross pay is calculated by adding the net pay of $667.17 and the total deductions of $185.79, resulting in a gross pay of $852.96. Therefore, the best answer is option d. $852.96.
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