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Question - Terry McNutt, a single employee with two withholding allowances, is paid $12.00 per hour and receives commission on net sales. He does not receive a commission until his net sales exceed $150,000. Once the minimum net sales is reached, he receives 4 percent commission on all of his sales at Skidoo Sports. During the week of January 23, he sold $82,000 of ski equipment; however, he had $2,300 of returns from the prior week's sales. Company policy requires that commissions on sales returns are deducted from the employee's pay. Employee returns of commissions will reduce standard pay. If this results in the employee earning less than minimum wage, the employer will contribute the difference.
Required - Compute Terry's gross pay for the 40 hour weekly pay period.
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