If an employee earned $4,200 over the prior 12 weeks, what is the weekly amount used to calculate termination pay?

If an employee earned $4,200 over the prior 12 weeks, what is the weekly amount used to calculate termination pay?

• A. $300
• B. $400
• C. $450
• D. $350

Answer: (D)

Termination pay uses the employee’s average earnings over the last 12 weeks. To find the weekly amount, divide the total earnings in that period by 12. Here, 4,200 earned over 12 weeks divided by 12 equals 350. So the weekly amount used is 350. The other numbers would require a different total over 12 weeks (for example, 3,600, 4,800, or 5,400), which isn’t the case here.

Termination pay uses the employee’s average earnings over the last 12 weeks. To find the weekly amount, divide the total earnings in that period by 12. Here, 4,200 earned over 12 weeks divided by 12 equals 350. So the weekly amount used is 350. The other numbers would require a different total over 12 weeks (for example, 3,600, 4,800, or 5,400), which isn’t the case here.