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Income Statements

Last updated over 1 year ago

10 questions

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Question 1

1.

Barbara started a new job and wants to verify that her net pay has been computed correctly.
Her gross pay per pay period is $269.75.

She has the following deductions: SS tax 6.2%, Medicare tax 1.45%, federal withholding tax $47.51, state withholding tax $16.62, retirement insurance contribution $9.00, disability insurance fee $2.56, medical insurance fee $12.00, and dental insurance fee $6.00.

What should her net pay be for this pay period?

$102.89

$114.32

$155.43

$210.00

Question 2

2.

Examine the following paystub for an employee who gets paid biweekly (26 times a year):

How much money will the person pay in SS tax each year?

$6720

$6738.96

$7280

$7300.54

Question 3

3.

Examine the following paystub for an employee who gets paid biweekly (26 times a year):
What PERCENTAGE of their gross annual pay will this person pay in Union dues?

(Hint! Percentage are found by Part÷Whole)

1.33%

61%

10.3%

0.3%

Question 4

4.

Use the partial information given in this electronic W-2 form to calculate the amount in Box 1:

(Hint! Remember, Box 1+Box 12a = Box5)

$1900

$71,194

$66,694

$73,094

Question 5

5.

Observe the following W2 for the year 2020. How much tax was paid in the year 2020? (HINT! Federal tax, Medicare tax, and State Income tax were all paid)

$2642.51

$3822.21

$783.00

$500

Question 6

6.

What does the term tax-deffered mean?

Question 7

7.

Suppose Liz has an annual salary of $72,580. What is her annual Social Security deduction?
(Remember the SS tax rate is 6.2%)

$1052.41

$4499.96

$5064.33

Question 8

8.

Suppose Liz has an annual salary of $72,580. What is her annual Medicare deduction?
(remember, the medicare tax rate is 1.45%)

$1052.41

$4499.96

$5064.33

Question 9

9.

Suppose Liz has an annual salary of $72,580.
She is paid biweekly, what is her gross biweekly pay?

$1052.41

$4499.96

$2791.54

Question 10

10.

Each pay period, Liz's (from the previous problem) employer deducts 21% for federal withholding. What is the total amount withheld from each paycheck for federal taxes?

586.23

625

781