Final answer:
The accumulated earnings column of the employee earnings record shows the total gross earnings of an employee for the current year. Calculating the gross annual income requires summing up earnings before deductions for a year, and the net annual income is gross income after taxes and contributions. Monthly income is then calculated by dividing the net annual income by twelve.
Step-by-step explanation:
The accumulated earnings column of the employee earnings record shows the total earnings of an employee since the start of the fiscal year or the start of their employment if it began within the year. To address the specific question options:
- a. shows net pay for the year - This is incorrect, as the accumulated earnings column usually reflects gross pay rather than net pay.
- b. the total earnings since the first year - This is not usually the case; accumulated earnings typically refer to total earnings for the current year.
- c. shows net pay for one quarter - Accumulated earnings do not typically reflect net pay and generally encompass more than one quarter.
- d. is the gross earnings for one quarter - The accumulated earnings column encompasses earnings beyond just one quarter.
To calculate the gross annual income for different positions, such as Mc Dowel's and Custodian, one would need to sum up the total earnings before taxes and other deductions for one year. For jobs like customer care and financial analyst, the gross annual income may already be known, requiring no additional calculations. The Net Annual Income is obtained after subtracting taxes, social security, and medicare from the gross income.
To calculate monthly income, one would divide the Net Annual Income by twelve. When considering job options like those presented to Peter, one should also account for basic monthly expenses and compare it against the monthly income to determine which option is financially viable.