Old Town Entertainment has two employees in Year $1.$ Clay earns $$4,600$ per month, and Philip, the manager, earns $$10,400$ per month.

Neither is paid extra for working overtime. Assume the Social Security tax rate is $6$ percent on the first $$110,000$ of earnings and the

Medicare tax rate is $1\mathrm{.}5$ percent on all earnings. The federal income tax withholding is $13$ percent of gross earnings for Clay and $19$

percent for Philip. Both Clay and Philip have been employed all year.

Required

a$.$ Calculate the net pay for both Clay and Philip for March.

b$.$ Calculate the net pay for both Clay and Philip for December.

c$.$ Is the net pay the same in March and December for both employees?

d$.$ What amounts will Old Town report on the Year $1$ W$-2$s for each employee?

Complete this question by entering your answers in the tabs below.

Req A and $B$

Calculate the net pay for both Clay and Philip for March.

Calculate the net pay for both Clay and Philip for December.

$($Do not round intermediate calculations and round your answers to $2$ decimal places.$)$