What is the employee's gross pay?
$703.86
$714.40
$716.26
$726.80
Answer (2)
Calculate the total deductions: $62.00 + $45.06 + $10.54 + $12.40 = $130.00.
Add the total deductions to the net pay to find the gross pay: $596.80 + $130.00 = $726.80.
The employee's gross pay is $\boxed{ 726.80} .
Explanation
Understanding the Problem We are given the employee's net pay and several deductions, and we need to find the gross pay. The gross pay is the total amount earned before any deductions are taken out. The net pay is the amount the employee receives after all deductions are subtracted from the gross pay.
Identifying the Deductions To find the gross pay, we need to add up all the deductions to the net pay. The deductions are Federal Withholding, Social Security Withholding, Medical Care, and State Withholding.
Listing the Deductions The deductions are:
Federal Withholding: $62.00 - Social Security Withholding: $45.06
Medical Care: $10.54 - State Withholding: $12.40
Calculating Total Deductions Now, let's calculate the total deductions by adding them up: Total Deductions = $62.00 + $45.06 + $10.54 + $12.40 = $130.00
Calculating Gross Pay We are given the net pay as $596.80. To find the gross pay, we add the total deductions to the net pay: Gross Pay = Net Pay + Total Deductions Gross Pay = $596.80 + $130.00 = $726.80
Final Answer Therefore, the employee's gross pay is $726.80.
Examples
Understanding gross pay versus net pay is crucial in personal finance. For example, when budgeting, it's important to know your gross income to understand your total earnings potential. When applying for loans or mortgages, lenders often look at your gross income to assess your ability to repay. Knowing how deductions impact your net pay helps you plan your expenses effectively and understand where your money is going.
The employee's gross pay is determined by identifying the total earnings before any deductions. Without additional context, the highest option provided is likely the gross pay, which is $726.80. Therefore, the chosen answer is $726.80.
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