Final answer:
To find the employee's gross wages, divide the CPP deduction ($41.04) by the pension plan rate expressed as a decimal (8.42% or 0.0842), resulting in gross wages of $487.65.
Step-by-step explanation:
The question involves using a given percentage rate to calculate an employee's gross wages based on the amount of Canada Pension Plan (CPP) premium deducted. If the deduction for the pension plan is $41.04 and this represents 8.42% of the gross wages, the calculation to determine the gross wages would be to divide the deducted amount by the percentage rate, expressed as a decimal:
Gross Wages = Deducted Amount ÷ Pension Plan Rate
Gross Wages = $41.04 ÷ 0.0842
Gross Wages = $487.65 (rounded to two decimal places)
Therefore, the employee's gross wages were $487.65.