Old Town Entertainment has two employees in Year 1. Clay earns $4,600 per month, and Philip, the manager, earns $10,200 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 14 percent of gross earnings for Clay and 21 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-2s for each employee? Complete this question by entering your answers in the tabs below. Reg A and B Req C Req D 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 2 decimal places.) Net Pay a. Clay Philip b. Clay Philip Reg A and B Req C Req D Is the net pay the same in March and December for both employees? Is the net pay the same in March and December for both employees? Reg A and B Req C Req 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 1 Wages, tips, and other compensation 2 Federal income tax withheld 3 Social security wages 4 Social security tax withheld | 5 Medicare wages and tips 6 Medicare tax withheld Philip 1 Wages, tips, and other compensation 2 Federal income tax withheld | 3 Social security wages | 4 Social security tax withheld |x 5 Medicare wages and tips 6 Medicare tax withheld