chapter 9 question 7

Sky Company employed Tom Mills in Year 1. Tom earned $5,400 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 with holding amount is $900 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federa 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 $5,400 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 F February Year 1? March Year 1? December Year 1? What is Tom's net pay per month? (Round your answer to 2 decimal places.) What amount does Tom pay monthly in FICA payroll taxes? (Round your answer to 2 decimal places.) 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.) Assume that instead of $5,400 per month Tom earned $9,500 per month. What is Tom's net pay? (Round your answers to 2 decimal places.) Assume that instead of $5,400 per month Tom earned $9,500 per month. What amount does Tom pay monthly in FICA payrol taxes? (Round your answers to 2 decimal places.) Assume that instead of $5,400 per month Tom earned $9,500 per month. What is the total payroll tax expense for 5kk Company for January Year 1 ? February Year 1 ? March Year 1 ? December Year 1 ? (Round your answers to 2 decimal places.)