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Old Town Entertainment has two employees in Year 1. Clay earns $4,700 per month, and Philip, the manager, earns $10,600 per month Neither is paid

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Old Town Entertainment has two employees in Year 1. Clay earns $4,700 per month, and Philip, the manager, earns $10,600 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 1.5 percent on all earnings. The federal income tax withholding is 15 percent of gross earnings for Clay and 20 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 1W-2s for each employee? Complete this question by entering your answers in the tabs below. Reg A and B Regc Reg D What amounts will Old Town report on the Year 1 W-2s for each employee? (Do not round Intermediate calculations.) Amount Appearing on W-2 for Year 1 Clay Box 1 Box 2 Box 3 Box 4 Box 5 Box 6 Wages, tips, and other compensation Federal income tax withheld Social security wages Social security tax withhold Medicare wages and tips Medicare tax withheld Philip Box 1 Box 2 Box 3 Box 4 Wages, tips, and other compensation Federal income tax withheld Social security wages Social security tax withheld Req A and B Reqc Reg D What amounts will Old Town report on the Year 1 W-2s for each empl Amount Appearing on W-2 for Year 1 Clay Box 1 Box 2. Box 3 Wages, tips, and other compensation Federal income tax withheld Social security wages Social security tax withheld Medicare wages and tips Medicare tax withheld Box 4 Box 5 Box 6 Philip Box 1 Box 2. Box 3 Wages, tips, and other compensation Federal income tax withheld Social security wages Social security tax withheld Medicare wages and tips Medicare tax withheld Box 4 Box 5 Box 6

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