University:
Eastern Kentucky University
Course:
ACC 322 | Tax I
Academic year:

2021
Views:

261

Pages:

4
Author:

Alma Hester

Part 1 : 1. What does FICA consist of? 2. What are 2 examples of discretionary spending? 3. What is the difference between gross pay and net pay? 4. What are Pre-Tax Deductions and Contributions? 5. What are two examples of Employer Contributions? Fine Print: Pay Stub In this activity, you will explore a pay stub in more detail to understand its various components. Then, you will answer questions using the sample pay stub below. Part II: Read The Fine Print Analyze this sample pay stub and answer the questions that follow. 1. Hope's employer deposits her paycheck directly into her checking account. How much would her employer have deposited into Hope's checking account on the most recent payday of 5/21/18? a) $40.00 b) $284.79 c) $315.21 d) $600.00 2. a) b) c) d) About how frequently does Hope receive a paycheck? Daily Weekly Every two weeks Monthly 3. Which of the following statements are TRUE? (choose ALL correct answers) Statement Hope actually received her pay on the last day of her pay period. Hope's net pay was $600 for this pay period. Hope's net pay for this pay period was $284.79. Hope paid $76.58 this pay period for the health insurance plan provided to her by her company. 4. Assuming that Hope receives a paycheck at regular intervals similar to the stub shown, how many pay periods has Hope had year-to-date (YTD)? a) 2 b) 3 c) 8 d) 9 5. Which of the following benefits does Hope pay for through payroll deductions? (choose ALL correct answers) Statement Retirement Tuition reimbursement Health Dental 6. a) b) c) d) What was the TOTAL amount deducted from Hope's latest paycheck? $90.00 $284.79 $315.21 $600.00 7. Hope's contribution to her RETIREMENT plan a) is a post-tax contribution in which federal income taxes are paid b) is pre-tax and therefore not taxed for federal income tax purposes c) is a mandatory payroll deduction d) is taxed at a rate of 15% 8. a) b) c) d) What was the largest deduction for this pay period? Medicare Tax Federal Tax State Tax Retirement 9. One of Hope’s coworkers quits, and during the next pay period Hope works 60 hours instead of 40 to help cover the shifts. Which of Hope’s deductions will definitely change as a result? a) Her Federal tax b) Her health c) Her dental d) Her retirement 10. Which of the following statements are TRUE? (choose ALL correct answers) Statement This is the first pay period of the year for Hope. Hope's hourly pay is $40 per hour. Hope has contributed $540.00 to her retirement plan so far this year. Hope has paid $810.00 in federal taxes so far this year. Part II: What Did You Learn? Use what you learned from analyzing the pay stub to answer this question. 11. What information is available on a pay stub?

Tax Pay

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