Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I only need help with B1 please. Exercise 9-11A (Algo) Calculating employee and employer payroll taxes LO 9-5 Sky Co. employed Tom Mills in Year

I only need help with B1 please.image text in transcribed

Exercise 9-11A (Algo) Calculating employee and employer payroll taxes LO 9-5 Sky Co. 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 1.5 percent. Tom's federal income tax withholding amount is $900 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 12 February, Year 12 March, Year 12 December, Year 1? b. Assume that instead of $5,600 per month Tom earned $11,100 per month. Based on this new level of income Tom's new federal income tax withholding is $2,200. 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 12 February, Year 12 March, Year 1 December, Year 1? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required B1 Required B2 Required B3 Assume that instead of $5,600 per month Tom earned $11,100 per month. Based on this new level of income Tom's new federal income tax withholding is $2,200. What is Tom's net pay? (Round your answers to 2 decimal places.) January to November (per month) December Net Pay 9.367.50 9,559.50

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Stand Up To The Irs How To Handle Audit Tax Bill And Tax Count

Authors: Frederick W. Daily, Robin Leonard

1st Edition

0873373375, 978-0873373371

More Books

Students also viewed these Accounting questions

Question

c. What were you expected to do when you grew up?

Answered: 1 week ago

Question

d. How were you expected to contribute to family life?

Answered: 1 week ago

Question

e. What do you know about your ethnic background?

Answered: 1 week ago