oed Book Hint Ask Exercise 9-11A (Algo) Calculating employee and employer payroll taxes LO 9-5 Sky Company employed Tom Mills in Year 1. Tom earned $5,700 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 $870 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 Company for January, Year 1? February, Year 1? March, Year 17 December, Year 1? b. Assume that instead of $5,700 per month Tom earned $11,500 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 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. Required A1 Required A2 Required A3 Required 81 Required B2 Required 83 Assume that instead of $5,700 per month Tom earned $11,500 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 Company for January, Year 17 February, Year 17 March, Year 17 December, Year 17 Note: Round your answers to 2 decimal places. Show less