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Old 08-06-2008, 12:56 PM
triplecheerz triplecheerz is offline
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Default Help with commission problem?

Jim earns $12,000 a year with a 4.5% commission on sales. His total monthly deductions are as follows: $58.05 FICA, $184.60 Federal income tax, and $85.50 medical insurance. His total monthly sales average $20,000. Jim receives no fringe benefits.What's his monthly gross pay?
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Old 08-12-2008, 02:21 PM
MavistheMaven7279 MavistheMaven7279 is offline
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Default Help with commission problem?

Gross pay is pay before deductions, so his deductions are irrelevant. His salary is $12,000/year / 12 months = $1,000/month.His monthly commission is $20,000 x 0.045 = $900.So his total monthly income is $1,000 + $900 = $1,900.
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