Calculate gross pay for each of the following employees. All are paid an overtime wage rate that is 1.5 times their respective regular wage rates. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation Amy Blackwood receives tips from customers as a standard component of her weekly pay. She is paid $2.38/hour by her employer and receives $155 in tips during the most recent 45-hour workweek. Calculate Gross Pay = $__________ Employees who receive tips are covered by the FLSA and therefore must be paid the applicable hourly minimum wage. A tipped employee is someone who typi-cally receives more than $30/month in tips. Employers can take advantage of a maximum tip credit of $5.12, which results in employees receiving an hourly wage of $2.13 ($7.25 minimum wage minus $5.12 tip credit). Employers who elect to take advantage of this tip credit must inform employees of their intention to do so and must use a consistent tip credit for both regular and overtime hours. Additionally, if the applicable state tip credit is lower than $5.12, the employer may take advantage only of this lower amount. If the employee’s total hourly wage (the sum of the hourly wage received and employee tips) does not exceed the applicable minimum wage, the employer must compensate the employee for the difference. In addition, the employer must use the overtime factor (1.5 for time and a half) to calculate the overtime hourly rate for a tipped employee based on the applicable minimum wage. No tip credit may be factored into this calculation. Tipped Employees Overtime Calculation Step 1: Regular hourly rate × regular hours worked = regular earnings Step 2: Minimum wage − regular hourly rate = hourly tip credit Step 3: (Minimum wage × overtime factor) − hourly tip credit = overtime hourly rate Step 4: Overtime hourly rate × overtime hours worked = overtime earnings Step 5: Total hours worked × hourly tip credit = total tip credit Step 6: Regular earnings + overtime earnings + total tips = total earnings Please read all the GIVEN above and offer a solution. Here are my workings but the answer is INCORRECT: 2.38 x 40 = 95.20 7.25 - 2.38 = 4.87 (7.25 x 1.5) - 4.87 = 6.01 6.01 x 5 = 30.05 45 x 4.87 = 219.15 95.20 + 30.05 + 155 = 280.25 Incorrect Answer: 280.25
Calculate gross pay for each of the following employees. All are paid an overtime wage rate that is 1.5 times their respective regular wage rates.
NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation
Amy Blackwood receives tips from customers as a standard component of her weekly pay. She is paid $2.38/hour by her employer and receives $155 in tips during the most recent 45-hour workweek.
Calculate Gross Pay = $__________
Employees who receive tips are covered by the FLSA and therefore must be paid the applicable hourly minimum wage. A tipped employee is someone who typi-cally receives more than $30/month in tips. Employers can take advantage of a maximum tip credit of $5.12, which results in employees receiving an hourly wage of $2.13 ($7.25 minimum wage minus $5.12 tip credit). Employers who elect to take advantage of this tip credit must inform employees of their intention to do so and must use a consistent tip credit for both regular and overtime hours. Additionally, if the applicable state tip credit is lower than $5.12, the employer may take advantage only of this lower amount.
If the employee’s total hourly wage (the sum of the hourly wage received and employee tips) does not exceed the applicable minimum wage, the employer must compensate the employee for the difference. In addition, the employer must use the overtime factor (1.5 for time and a half) to calculate the overtime hourly rate for a tipped employee based on the applicable minimum wage. No tip credit may be factored into this calculation.
Tipped Employees Overtime Calculation
Step 1: Regular hourly rate × regular hours worked = regular earnings
Step 2: Minimum wage − regular hourly rate = hourly tip credit
Step 3: (Minimum wage × overtime factor) − hourly tip credit = overtime hourly rate
Step 4: Overtime hourly rate × overtime hours worked = overtime earnings
Step 5: Total hours worked × hourly tip credit = total tip credit
Step 6: Regular earnings + overtime earnings + total tips = total earnings
Please read all the GIVEN above and offer a solution. Here are my workings but the answer is INCORRECT:
2.38 x 40 = 95.20
7.25 - 2.38 = 4.87
(7.25 x 1.5) - 4.87 = 6.01
6.01 x 5 = 30.05
45 x 4.87 = 219.15
95.20 + 30.05 + 155 = 280.25
Incorrect Answer: 280.25
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