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please help:( Old Town Entertainment has two employees in Year 1. Clay earns ( $ 3,700 ) per month, and Philip, the manager, earns (
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Old Town Entertainment has two employees in Year 1. Clay earns \\( \\$ 3,700 \\) per month, and Philip, the manager, earns \\( \\$ 10,300 \\) per month. Neither is paid extra for working overtime. Assume the Social Security tax rate is 6 percent on the first \\( \\$ 130,000 \\) 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 22 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. Calculate the net pay for both Clay and Philip for March. Calculate the net pay for both Clay and Phllip for December: (Do not round intermediate calculations and round your answers to 2 decimal places.) What amounts will Old Town report on the Year \\( 1 \\mathrm{~W}-2 \\mathrm{~s} \\) for each employee? (Do not round intermediate calculations.) Step by Step Solution
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