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Old Town Entertainment has two employees in Year 1 . Clay earns $ 3 , 5 0 0 per month, and Philip, the manager, earns
Old Town Entertainment has two employees in Year Clay earns $ per month, and Philip, the manager, earns $ per month. Neither is paid extra for working overtime. Assume the Social Security tax rate is percent on the first $ of earnings and the Medicare tax rate is percent on all earnings. The federal income tax withholding is percent of gross earnings for Clay and percent for Philip. Both Clay and Philip have been employed all year.
Required
Calculate the net pay for both Clay and Philip for March.
Calculate the net pay for both Clay and Philip for December.
Is the net pay the same in March and December for both employees?
What amounts will Old Town report on the Year Ws for each employee?
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To calculate the net pay for both Clay and Philip for March and December we need to consider the Social Security tax Medicare tax and federal income t...Get Instant Access to Expert-Tailored Solutions
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