Exercise $9-11$A $($Algo$)$ Calculating employee and employer payroll taxes LO $9-5$

Sky Company employed Tom Mills in Year $1.$ Tom earned $$5,600$ per month and worked the entire year. Assume the Social Security tax rate is $6$ percent for the first $$130,000$ of earnings, and the Medicare tax rate is $1\mathrm{.}5$ percent. Tom$$s federal income tax withholding amount is $$880$ per month. Use $5\mathrm{.}4$ percent for the state unemployment tax rate and $0\mathrm{.}6$ percent for the federal unemployment tax rate on the first $$7,000$ of earnings per employee.

Required

Answer the following questions:

What is Tom$$s net pay per month?

What amount does Tom pay monthly in FICA taxes?

What is the total payroll tax expense for Sky Company for January, Year $1?$ February, Year $1?$ March, Year $1?$ December, Year $1?$

Assume that instead of $$5,600$ per month Tom earned $$11,500$ per month. Based on this new level of income Tom$$s new federal income tax withholding is $$1,800.$ Answer the following questions.

What is Tom$$s net pay per month?

What amount does Tom pay monthly in FICA payroll taxes?

What is the total payroll tax expense for Sky Company for January, Year $1?$ February, Year $1?$ March, Year $1?$ December, Year $1?$