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Sky Co. employed Tom Mills in Year 1. Tom earned $5,100 per month and worked the entire year. Assume the Social Security tax rate is

Sky Co. employed Tom Mills in Year 1. Tom earned $5,100 per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first $130,000 of earnings, and the Medicare tax rate is 1.5 percent. Toms federal income tax withholding amount is $900 per month. Use 5.4 percent for the state unemployment tax rate and .06 percent for the federal unemployment tax rate on the first $7,000 of earnings per employee. Required Answer the following questions: What is Toms net pay per month? What amount does Tom pay monthly in FICA taxes? What is the total payroll tax expense for Sky Co. for January, Year 1? February, Year 1? March, Year 1? December, Year 1? Assume that instead of $5,100 per month Tom earned $11,000 per month. Based on this new level of income Toms new federal income tax withholding is $2,000. Answer the questions in Requirement a.

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