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oOnly those I got wrong are required to answer and explain, thank you Old Town Entertainment has two employees in Year 1. Clay earns $4,400

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Old Town Entertainment has two employees in Year 1. Clay earns $4,400 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 16 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-2s for each employee? Req A and B Reg C Reg 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 to 2 decimal places.) a. Clay Philip Clay Net Pay $ 4,070.00 $ 9,435.00 X $ 4,070.00 X $ 10,047.00 b. Philip 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 Wages, tips, and other compensation Federal income tax withheld Box 2 Box 3 52,800 8,448 52,800 3,168 52,800 Social security wages Social security tax withheld Medicare wages and tips Box 4 Box 5 Box 6 Medicare tax withheld 792 Philip Box 1 122,400 Wages, tips, and other compensation Federal income tax withheld Box 2 Box 3 23,256 110,000 6,600 122,400 Social security wages Social security tax withheld Medicare wages and tips Medicare tax withheld Box 4 Box 5 Box 6 349 X

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