Question

how is gross pay for an hourly employee calculated? divide the total annual salary by the number of pay periods over the course of the year. multiply the number of hours worked by the pay rate. subtract deductions from net pay and divide this number by 12.

Explanation:

• For an hourly employee, gross pay is the total earnings before deductions. The formula for gross pay for hourly workers is \( \text{Gross Pay} = \text{Hours Worked} \times \text{Pay Rate} \).
• The first option describes calculating pay for a salaried employee (dividing annual salary by pay periods).
• The third option is incorrect as it involves net pay and deductions, which are not part of gross pay calculation for hourly workers.

Answer:

B. Multiply the number of hours worked by the pay rate.