Holiday Hall has two employees in 2010. Seon earns ($ 4,600) per month and Hun, the manager,
Question:
Holiday Hall has two employees in 2010. Seon earns \(\$ 4,600\) per month and Hun, the manager, earns \(\$ 10,800\) per month. Neither is paid extra for working overtime. Assume the Social Security tax rate is 6 percent on the first \(\$ 110,000\) of earnings and the Medicare tax rate is 1.5 percent on all earnings. The federal income tax withholding is 15 percent of gross earnings for Seon and 20 percent for Hun. Both Seon and Hun have been employed all year.
Required
a. Calculate the net pay for both Seon and Hun for March.
b. Calculate the net pay for both Seon and Hun for December.
c. Is the net pay the same in March as December for both employees? Why or why not?
d. What amounts will Holiday Hall report on the 2010 W-2s for each employee?
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