Carter Co. employed Sam Goldman in 2010. Sam earned \(\$ 5,200\) per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first \(\$ 110,000\) of earnings and the Medicare tax rate is 1.5 percent. Sam's federal income tax withholding amount is \(\$ 900\) per month. Use 5.4 percent for the state unemployment tax rate and .8 percent for the federal unemployment tax rate on the first \(\$ 7,000\) of earnings per employee.

Required

a. Answer the following questions.

(1) What is Sam's net pay per month?

(2) What amount does Sam pay monthly in FICA payroll taxes?

(3) What is the total payroll tax expense for Carter Co. for January 2010? February 2010 ? March 2010? December 2010?

b. Assume that instead of \(\$ 5,200\) per month Sam earned \(\$ 9,600\) per month. Answer the questions in Requirement \(a\).