Please note that the weekly amounts and the year-to-date amounts should be considered SEPARATE mistakes, not one big mistake.

IMPORTANT: YOU MUST SHOW YOUR ENTIRE CALCULATIONS WHEN CORRECTING THE MISTAKES. SIMPLY GIVING YOUR UPDATED AMOUNT IS NOT ACCEPTABLE AND YOU WILL LOSE POINTS!

Please review the check stub below and identify, explain, and fix the 10 mistakes:

Ex.) Hourly rate is incorrect. Should be stated as earnings per hour, not total earnings for the pay period.

$1,200 gross pay / 80 hours worked = $15 correct hourly rate

1)Since its bi-weekly pay period it should be the 19thof 2019 not the 24th

2)Medicare taxis wrong is 1.45 % x 1200=17.40 not 65.63 and for year to date 525.04 is wrong it should be 139.20

3)social security tax is calculated as 6.2%,for this period 18.64 is incorrect it should be 1200 x 6.2% =74.40 as the correct social security tax and year to date is 595.20 not 149.12.

4)

5)

6)

7)

8)

9)

10)

Some Corporation

Earnings Statement

123 Somewhere Drive

Ann Arbor, MI 48104

Hope Marie Kingsley

8670 Rogerson Drive

Ann Arbor, MI 48104

Employee ID Number

98856

Job Title

Administrative Assistant

Social Security Number

123-45-6789

Department Number

K7890

Pay Period

4/5/2020 4/18/2020

Pay Date

4/24/2020

Taxable Marital Status

Married

Exemptions/Allowances

Federal

2

State

0

Earnings

Rate Hours

This Period

Year To Date

1,200.00 80

1,200.00

9,600.00

Gross Pay

1,200.00

9,600.00

Deductions

Federal Income Tax

121.99

975.92

State Income Tax

79.68

637.44

Social Security Tax

18.64

149.12

Medicare Tax

65.63

525.04

Health

76.58

612.64

Dental

26.56

212.48

Retirement*

150.00

1,200.00

Net Pay

660.92

5,287.36

*Excluded from federal and state income taxes only. Not excluded from FICA taxes.

paystub Mistakes Assignment

New employees rely on the payroll accounting professional to help them understand their paycheck. Quite often candidates are wooed into new positions with starting salaries that seem impressive but the amount looks much smaller when divided by pay periods with taxes, insurance and retirement removed from the amount. Hope Kingsley is a somewhat new employee at Some Corporation, where she began working December 30, 2019, the first Monday of the first pay period for the year. She has just received her 8th paycheck of the year and have noticed a few issues she would like some help with. Your job is to find those mistakes, explain what the mistake actually is (i.e. tax is calculated wrong, year-to-date amounts are wrong, etc.), and fix it (i.e. calculate the correct amount of tax, include the correct date, etc.)

There are a total of 10 mistakes on this paystub. Each mistake that you identify, explain, and fix, is worth 5 points, for a total possible of 50 points. Please assume that all names and addresses are correct, the Married status and the allowances for both Federal and State are correct, the fact that she worked 80 hours in the 2-week pay period is correct, and her Gross Pay for this pay period and the Year-To-Date Gross Pay is correct. The amounts deducted for Health, Dental, and Retirement are also correct for both this pay period and the Year-To-Date. The Health and Dental deductions are not exempt from any taxes and, therefore, should not be subtracted from the income before you calculate any taxes.

Some Corporation pays it employees bi-weekly, with the pay period beginning on a Sunday and ending on a Saturday. The company uses the Percentage Method to calculate ALL Federal Income Tax. NOTE: You MUST use the Tax Tables provided in the textbook for the Federal Income Tax. Do NOT use an outside source. HOWEVER, you may need to do a quick Google search to verify the State Income Tax rate. The paychecks are distributed the Friday following the end of the pay period. ALL employees of the company are paid on an hourly basis. Below is the 8th paycheck of 2020 for Hope Kingsley, a brand new, hourly employee.

NOTE: The format of the paystub is correct! Please do not get hung up on the wording of the items on the paystub or the format of how that information is displayed! Every company formats their pay stubs a little differently!

One additional mistake has been corrected for you so you can see how this assignment is supposed to be completed.

Please note that the weekly amounts and the year-to-date amounts should be considered SEPARATE mistakes, not one big mistake.

IMPORTANT: YOU MUST SHOW YOUR ENTIRE CALCULATIONS WHEN CORRECTING THE MISTAKES. SIMPLY GIVING YOUR UPDATED AMOUNT IS NOT ACCEPTABLE AND YOU WILL LOSE POINTS!

Please review the check stub below and identify, explain, and fix the 10 mistakes:

Ex.) Hourly rate is incorrect. Should be stated as earnings per hour, not total earnings for the pay period.

$1,200 gross pay / 80 hours worked = $15 correct hourly rate

1)Since its bi-weekly pay period it should be the 19thof 2019 not the 24th

2)Medicare taxis wrong is 1.45 % x 1200=17.40 not 65.63 and for year to date 525.04 is wrong it should be 139.20

3)social security tax is calculated as 6.2%,for this period 18.64 is incorrect it should be 1200 x 6.2% =74.40 as the correct social security tax and year to date is 595.20 not 149.12.

4)

5)

6)

7)

8)

9)

10)

Some Corporation		Earnings Statement
123 Somewhere Drive
Ann Arbor, MI 48104		Hope Marie Kingsley
		8670 Rogerson Drive
		Ann Arbor, MI 48104
Employee ID Number	98856
Job Title	Administrative Assistant
Social Security Number	123-45-6789
Department Number	K7890
Pay Period	4/5/2020 4/18/2020
Pay Date	4/24/2020
Taxable Marital Status	Married
Exemptions/Allowances
Federal	2
State	0
Earnings
Rate Hours	This Period	Year To Date
1,200.00 80	1,200.00	9,600.00
Gross Pay	1,200.00	9,600.00
Deductions
Federal Income Tax	121.99	975.92
State Income Tax	79.68	637.44
Social Security Tax	18.64	149.12
Medicare Tax	65.63	525.04
Health	76.58	612.64
Dental	26.56	212.48
Retirement*	150.00	1,200.00
Net Pay	660.92	5,287.36
*Excluded from federal and state income taxes only. Not excluded from FICA taxes.

Paystub Mistakes Assignment New employees rely on the payroll accounting professional to help them understand their paycheck. Quite often candidates are wooed into new positions with starting salaries that seem impressive but the amount looks much smaller when divided by pay periods with taxes, insurance and retirement removed from the amount. Hope Kingsley is a somewhat new employee at Some Corporation, where she began working December 30, 2019, the first Monday of the first pay period for the year. She has just received her 8th paycheck of the year and have noticed a few issues she would like some help with. Your job is to find those mistakes, explain what the mistake actually is (i.e. tax is calculated wrong, year-to-date amounts are wrong. etc.), and fix it (i.e. calculate the correct amount of tax, include the correct date, etc.) There are a total of 10 mistakes on this paystub. Each mistake that you identify, explain, and fix, is worth 5 points, for a total possible of 50 points. Please assume that all names and addresses are correct, the Married status and the allowances for both Federal and State are correct, the fact that she worked 80 hours in the 2-week pay period is correct, and her Gross Pay for this pay period and the Year-To-Date Gross Pay is correct. The amounts deducted for Health, Dental, and Retirement are also correct for both this pay period and the Year-To-Date. The Health and Dental deductions are not exempt from any taxes and therefore, should not be subtracted from the income before you calculate any taxes. Some Corporation pays it employees bi-weekly, with the pay period beginning on a Sunday and ending on a Saturday. The company uses the percentage Method to calculate ALL Federal Income Tax. NOTE: You MUST use the Tax Tables provided in the textbook for the Federal Income Tax. Do NOT use an outside source. HOWEVER, you may need to do a quick Google search to verify the State Income Tax rate. The paychecks are distributed the Friday following the end of the pay period. ALL employees of the company are paid on an hourly basis. Below is the 8th paycheck of 2020 for Hope Kingsley, a brand new, hourly employee. NOTE: The format of the paystub is correct! Please do not get hung up on the wording of the items on the paystub or the format of how that information is displayed! Every company formats their pay stubs a little differently! One additional mistake has been corrected for you so you can see how this assignment is supposed to be completed Please note that the weekly amounts and the year-to-date amounts should be considered SEPARATE mistakes, not one big mistake. One additional mistake has been corrected for you so you can see how this assignment is supposed to be completed. Please note that the weekly amounts and the year-to-date amounts should be considered SEPARATE mistakes, not one big mistake Paystub Mistakes Assignment New employees rely on the payroll accounting professional to help them understand their paycheck. Quite often candidates are wooed into new positions with starting salaries that seem impressive but the amount looks much smaller when divided by pay periods with taxes, insurance and retirement removed from the amount. Hope Kingsley is a somewhat new employee at Some Corporation, where she began working December 30, 2019, the first Monday of the first pay period for the year. She has just received her 8th paycheck of the year and have noticed a few issues she would like some help with. Your job is to find those mistakes, explain what the mistake actually is (i.e. tax is calculated wrong, year-to-date amounts are wrong. etc.), and fix it (i.e. calculate the correct amount of tax, include the correct date, etc.) There are a total of 10 mistakes on this paystub. Each mistake that you identify, explain, and fix, is worth 5 points, for a total possible of 50 points. Please assume that all names and addresses are correct, the Married status and the allowances for both Federal and State are correct, the fact that she worked 80 hours in the 2-week pay period is correct, and her Gross Pay for this pay period and the Year-To-Date Gross Pay is correct. The amounts deducted for Health, Dental, and Retirement are also correct for both this pay period and the Year-To-Date. The Health and Dental deductions are not exempt from any taxes and therefore, should not be subtracted from the income before you calculate any taxes. Some Corporation pays it employees bi-weekly, with the pay period beginning on a Sunday and ending on a Saturday. The company uses the percentage Method to calculate ALL Federal Income Tax. NOTE: You MUST use the Tax Tables provided in the textbook for the Federal Income Tax. Do NOT use an outside source. HOWEVER, you may need to do a quick Google search to verify the State Income Tax rate. The paychecks are distributed the Friday following the end of the pay period. ALL employees of the company are paid on an hourly basis. Below is the 8th paycheck of 2020 for Hope Kingsley, a brand new, hourly employee. NOTE: The format of the paystub is correct! Please do not get hung up on the wording of the items on the paystub or the format of how that information is displayed! Every company formats their pay stubs a little differently! One additional mistake has been corrected for you so you can see how this assignment is supposed to be completed Please note that the weekly amounts and the year-to-date amounts should be considered SEPARATE mistakes, not one big mistake. One additional mistake has been corrected for you so you can see how this assignment is supposed to be completed. Please note that the weekly amounts and the year-to-date amounts should be considered SEPARATE mistakes, not one big mistake