Old Town Entertainment has two employees in Year 1. Clay earns $4.600 per month, and Philip, the manager, earns $10,800 per month. pald extra for working overtime. Assume the Soclal Security tax rate is 6 percent on the first $110,000 of earnings and the tax withholding is 17 percent of gross earnings for Clay and 19 Nelther nercent for Philin Both Clay and Philio have beon ampioved all vaar a Calculate the net pay for both Clay and Philip for March. b. Calculate the net pay for both Clay and Philp for December What amount will Old Town report on the Yaar 1 W-2s for each emniowee? Book Complete this question by entering your answers in the tabs below. Req D Req A and B Req C Calculate the net pay for both Clay and Philip for March. Calculate the net pay for both Clay and Philip for December calculations and round your answers to 2 decimal places.) Net Pay a. Clay Philip Philip Req A and B Req C LO nth 5 Nether is pld extra for working avertime Assume the Social Security tax rate is 6 percent gn the frst Suo goo of ernings and the Medicare tax rate is 1.5 percent on all earnings. The federal Income tax withholding is 17 percent of gross earnings f percent for Philip. Both Clay and Philip have beon employad all yoar. Clay and 19 aiculate the net pay for both Clay and Philip for March. .Calculate the net pay for both Clay and Philip for December What amountrl Oid Town t the o Bosk Complete this question entering your answers in the tabs below. Req C Req D Rea A and Is the nat pay the same in March and Dacambar for both amployaas? Is the net pay the same in March and December r both employees? Req D Req A and B onth 5 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 1.5 percent on all earnings. The federal Income tax with holding is 17 percent of gross earnings for Clay and 19 percent for Philip. Both Clay and Phillip have been employed all year Required a. Calculate the net pay for both Clay and Philip for March. I the net pay the same In March and December for both emplovees? d. What amounts will Old Town report on the Year 1 W-2s for each employee? Book Complete this question by entering your answers in the tabs below. Re A and B Rea C Rea D What amounts will Old Town report on the Vear 1 W-2s for each employee? (Do not round intermediate calculations.) Amount Appearing on W-2 for Year 1 Clay Box Box 2 Wages, tips, and other compensation Federal income tax withheld Box 3 Social security wages Box 4 Social security tax withheld Box 5 Medicare wages and tips Medicare tax withheld Box Philip mpensation Wages, tips, and othe r withbeld Box 3 ecurity wanes Box 4 Social security tax withheld Medicare wages and tips Medicare tax withheld Box Box Req D Req C LO
