Answer: Heya!!
Gross wages are the total amount of remuneration paid to employees before any deductions.
Explanation:
An employee has $2,000 left every month after deductions. If his employment is eligible for a Medicare deduction of $250 per week and a tax cut of $500 per week, what is his gross wage?
Since there is a difference in the pay period unit, we will take the lowest given pay period, i.e., weekly rates. Hence, weekly deductions are:
Tax cuts = $500
Medicare = $250
Therefore, monthly deductions amount to $500 + $250 times 4, i.e. $3,000 per month. Hence, his monthly deductions are $3,000 per month.
This tells that his monthly gross wage is $2,000 + $3,000 per month = $5,000 p.m.
Hopefully this helps you!
- Matthew