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A1-A3 have been answered and can be given if needed to answer the second half. Sky Company employed Tom Mills in Year 1. Tom earned

image text in transcribedimage text in transcribedimage text in transcribed A1-A3 have been answered and can be given if needed to answer the second half.

Sky Company employed Tom Mills in Year 1. Tom earned $5,300 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. Tom's federal income tax withholding amount is $890 per month. Use 5.4 percent for the state unemployment tax rate and .06 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 Tom's net pay per month? (2) What amount does Tom pay monthly in FICA payroll taxes? (3) What is the total payroll tax expense for Sky Company for January Year 1? February Year 1? March Year 1? December Year 1? b. Assume that instead of $5,300 per month Tom earned $9,500 per month. Answer the following questions. (1) What is Tom's net pay per month? (2) What amount does Tom pay monthly in FICA payroll taxes? (3) What is the total payroll tax expense for Sky Company for January Year 1? February Year 1? March Year 1? December Year 1? Complete this question by entering your answers in the tabs below. Assume that instead of $5,300 per month Tom earned $9,500 per month. What is Tom's net pay? (Round your answers to 2 decimal places.) ssume that instead of $5,300 per month Tom earned $9,500 per month. What amount does Tom pay monthly in FICA payrol xes? (Round your answers to 2 decimal places.) Assume that instead of $5,300 per month Tom earned $9,500 per month. What is the total payroll tax expense for Sky Company for January Year 1? February Year 1? March Year 1? December Year 1? (Round your answers to 2 decimal places.)

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