Exercise 9-11A (Algo) Calculating employee and employer payroll taxes LO 9-5 Sky Co. employed Tom Mills in Year 1. Tom earned $5,100 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 1.5 percent. Tom's federal income tax withholding amount is $880 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 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 taxes? 3. What is the total payroll tax expense for Sky Co. for January, Year 17 February, Year 1? March, Year 1? December, Year 1? b. Assume that instead of $5,100 per month Tom earned $11,100 per month. Based on this new level of income Tom's new federal income tax withholding is $2,000. 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 Co. for January, Year 17 February, Year 1? March, Year 1? December, Year 1? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required B1 Required B2 Required B3 What is Tom's net pay per month? (Round your answer to 2 decimal places.) Tom's net pay per month Required A1 Required A2 What amount does Tom pay monthly in FICA taxes? (Round your answer to 2 decimal places.) Tom's monthly FICA tax What is the total payroll tax expense for Sky Co. for January, Year 17 February, Year 1? March, Year 1? December, Year 1? (Round your answers to 2 decimal places.) Total Employer Payroll Tax January February March December Assume that instead of $5,100 per month Tom earned $11,100 per month. Based on this new level of income Tom's new federal income tax withholding is $2,000. What is Tom's net pay? (Round your answers to 2 decimal places.) Net Pay January to November (per month) December Assume that instead of $5,100 per month Tom earned $11,100 per month. Based on this new level of income Tom's new federal income tax withholding is $2,000. What amount does Tom pay monthly in FICA payroll taxes? (Round your answers to 2 decimal places.) FICA Payroll Tax January to November (per month) December Assume that instead of $5,100 per month Tom earned $11,100 per month. Based on this new level of income Tom's new federal income tax withholding is $2,000. What is the total payroll tax expense for Sky Co. for January, Year 1? February, Year 1? March, Year 1? December, Year 1? (Round your answers to 2 decimal places.) Total Employer Payroll Tax January February March December
