For this problem, minimum wage is noted at $7.25

Henry Williams receives tips from customers as a standard component of his weekly pay. He is paid $3.10/hour by his employer and receives $322 in tips during the most recent 44-hour workweek. What is his gross pay for the week?

Transcribed Image Text:

NOTE! 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: Step 2: Step 3: Step 4: Step 5: Step 6: Regular hourly rate x regular hours worked = regular earnings Minimum wage - regular hourly rate = hourly tip credit (Minimum wage x overtime factor) - hourly tip credit = overtime hourly rate Overtime hourly rate x overtime hours worked = overtime earnings Total hours worked x hourly tip credit total tip credit Regular earnings + overtime earnings + total tips = total earnings The tip credit cannot exceed total tips received, so the employer should compare these figures after completing Step 5 above. If the tip credit is too high, the employer must reduce the tip credit such that it does not exceed total tips received. This reduction is calculated as current tip credit minus total tips received. NOTE! 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: Step 2: Step 3: Step 4: Step 5: Step 6: Regular hourly rate x regular hours worked = regular earnings Minimum wage - regular hourly rate = hourly tip credit (Minimum wage x overtime factor) - hourly tip credit = overtime hourly rate Overtime hourly rate x overtime hours worked = overtime earnings Total hours worked x hourly tip credit total tip credit Regular earnings + overtime earnings + total tips = total earnings The tip credit cannot exceed total tips received, so the employer should compare these figures after completing Step 5 above. If the tip credit is too high, the employer must reduce the tip credit such that it does not exceed total tips received. This reduction is calculated as current tip credit minus total tips received.

Answer rating: 100% (QA)

Solution Answer is highli... View the full answer