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Sky Company employed Tom Mills in Year 1 . Tom earned $ 5 , 1 0 0 per month and worked the entire year. Assume

Sky Company 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. Tom's federal Income tax withholding
amount is $900 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federal unemployment tax
rate on the first $7,000 of earnings per employee.
Required
a. Answer the following questions:
What is Tom's net pay per month?
What amount does Tom pay monthly in FICA taxes?
What is the total payroll tax expense for Sky Company for January, Year 1? February, Year 1? March, Year 1? December, Year 1?
b. Assume that instead of $5,100 per month Tom earned $11,200 per month. Based on this new level of income Tom's new federal
Income tax withholding is $2,000. Answer the following questions.
What is Tom's net pay per month?
What amount does Tom pay monthly in FICA payroll taxes?
What is the total payroll tax expense for Sky Company for January, Year 1? February, Year 1? March, Year 1? December, Year 1?
Complete this question by entering your answers in the tabs below.
Assume that instead of $5,100 per month Tom earned $11,200 per month. Based on this new level of income Tom's new
federal income tax withholding is $2,000. What is the total payroll tax expense for Sky Company for January, Year 1?
February, Year 1? March, Year 1? December, Year 1?
Note: Round your answers to 2 decimal places.
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