Cyrus is a tipped employee in Illinois He is single with one

Cyrus is a tipped employee in Illinois. He is single with one withholding allowance and the minimum cash wage in Illinois is $3.30 per hour for a 40-hour workweek. The tip credit in Illinois is $4.95 per hour (i.e., the minimum wage in Illinois is $8.25 per hour), and tips are included in overtime calculations. During a one-week period, Cyrus worked 52 hours and earned $180 in tips. What is his gross pay? (Do not round interim calculations. Round final answer to 2 decimal places.)

Solution

ANS-MINIMUM CASH WAGE PER HOUR=3.30

TIP CREDIT PER HOUR=4.95

TOTAL PAY=8.25 PER HOUR

FOR 52 HOURS =52*8.25=429$

TIPS INCUDED IN ABOVE=180$

THEREFORE THE PAY WOULD BE=429-180=249$