Question

a pay stub is a document that comes with your pay check each time you get paid. it includes important information about how much you worked, taxes, deductions and benefits like insurance that came out of your pay.analyze this sample pay stub and answer the questions that follow:earnings statementcompany namesome corporation 123 somewhere drive, durham, nc 12345employee name: hope maria kingsleyssn: xxx-xx-6789employee id: 98866check no: 98705pay period: 5/1/2020 - 5/15/2020pay date: 5/21/2020incomegross wages: rate 15.00, hours 40, current total 600.00deductions|deduction|current total|year-to-date|| ---- | ---- | ---- ||fica med tax|8.70|78.30||fica ss tax|37.20|334.80||fed tax|90.00|810.00||nc st tax|34.60|310.50||health|$76.58|$689.22||dental|$9.23|$74.07||retirement|$60.00|$540.00|ytd gross: 5,400.00ytd deductions: 2,836.89ytd net pay: 2,563.11current total: 600.00current deductions: 315.21net pay: 284.79excluded from federal taxable wagesytd = year to date, meaning from the beginning of the year until now. example: ytd deductions means since the start of the year, jan 1 (2020 on this pay stub) up to and including this pay stub, there has been $2,836.89 deducted.1. what is the main difference between gross wages and net wages?a) gross wages are what you take home after taxes; net wages are before deductions.b) gross wages are your total earnings before taxes and deductions; net wages are what you take home after deductions.c) gross wages include only overtime pay; net wages do not.d) gross wages are paid monthly; net wages are paid weekly.2. how frequently does hope receive a paycheck? (how long is the \pay period\?)a. dailyb. weeklyc. twice per monthd. monthly3. assuming that hope receives a paycheck at regular intervals similar to the stub shown, how many pay periods has hope had year-to-date, including this paycheck? (how many paychecks since the beginning of the year?)a. 2b. 3c. 8d. 9

Explanation:

Step1: Answer Q1 (define gross/net wages)

Gross wages = pre-deduction earnings; net = post-deduction take-home.

Step2: Answer Q2 (find pay period)

Pay stub shows 01/01/2020 - 01/15/2020, a 15-day interval.

Step3: Answer Q3 (calculate YTD pay periods)

YTD gross = $5,400; current gross = $600.
$\text{Number of periods} = \frac{5400}{600} = 9$

Answer:

1. B) Gross wages are your total earnings before taxes and deductions; net wages are what you take home after deductions.
2. c. Twice Per Month
3. d. 9