Marion Co. employed Juan Lopez in 2010. Juan earned \(\$ 5,000\) per month and worked the entire year. 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. Juan's federal income tax withholding amount is \(\$ 900\) per month. Use 6.2 percent for the unemployment tax rate for the first \(\$ 7,000\) of earnings per employee.
Required

a. Answer the following questions:

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

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

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

b. Assume that instead of \(\$ 5,000\) per month Juan earned \(\$ 9,500\) per month. Answer the questions in Requirement \(a\).