Austin has just received his first paycheck. He worked 22 hours at his new job and is being paid $8.00 per hour. He calculated that his paycheck should be $176. His paycheck amount is almost 1/3 less than he expected. What is the most likely reason that Austins pay is less than he expected it to be?

TAXES

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Austin has just received his first paycheck. He worked 22 hours at his new job and is being paid $8.00 per hour. He calculated that his paycheck should be $176. His paycheck amount is almost 1/3 less than he expected. What is the most likely reason that Austin’s pay is less than he expected it to be?

A	Austin neglected to deduct the amount required to pay income and payroll taxes
B	Austin neglected to deduct the excise tax paid on the uniforms he purchased to wear at his job.
C	Austin’s employer made a mistake calculating the number of hours Austin worked during his first pay period.
D	None of the above

Explanation:

Detailed explanation-1: -Mandatory deductions: Federal and state income tax, FICA taxes, and wage garnishments. Post-tax deductions: Garnishments, Roth IRA retirement plans and charitable donations. Voluntary deductions: Life insurance, job-related expenses and retirement plans.

Detailed explanation-2: -Income tax: paid on both earned and unearned income. Payroll tax: paid on only earned income.

Detailed explanation-3: -Earned income does not include amounts such as pensions and annuities, welfare benefits, unemployment compensation, worker’s compensation benefits, or social security benefits.

Detailed explanation-4: -Which statement is true about payroll taxes? Payroll taxes are paid on both earned and unearned income.

There is 1 question to complete.

MANAGEMENT

BUISENESS MANAGEMENT

TAXES