Question: Terry McNutt, a single employee with two dependents under the age of 17, is paid $12 per hour and receives a commission on net sales.
Terry McNutt, a single employee with two dependents under the age of 17, is paid $12 per hour and receives a commission on net sales. He does not receive a commission until his net sales exceed $150,000. Once the minimum net sales are reached, he receives a 4 percent commission on his sales at Skidoo Sports. During the week of January 24, he sold $87,000 of ski equipment; however, he had $2,250 of returns from the prior week’s sales. Company policy requires that commissions on sales returns are deducted from the employee’s pay, regardless of current commission earnings. Compute Terry’s gross pay for the 40-hour weekly pay period.

Filing Name Status No. of Hourly Regular Reg. Gross Dependents Rate Hours Earnings Commissions Earnings
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