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Sky Company employed Tom Mills in Year 1 . Tom eamed $5,200 per month and worked the entire year. Assume the Social Security tax rate

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Sky Company employed Tom Mills in Year 1 . Tom eamed \$5,200 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 $880 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: 1. What is Tom's net pay per month? 2. What amount does Tom pay monthly in FiCA taxes? 3. 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 $5,200 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. 1. What is Tom's net pay per month? 2. What amount does Tom pay monthly in FiCA payroll taxes? 3. What is the total payroll tax expense for Sky Company for January, Year 1? February. Year 1 ? March, Year 1 ? December, Year 1 ? What is Tom's net pay per month? Note: Round your answer to 2 decimal places. What amount does Tom pay monthly in FICA taxes? Note: Round your answer to 2 decimal places. What is the total payrolt tax cuppense for Sky Company for January, Year 1 ? February, Year 17 March, Year 1? December, Year 17 Note: Round youir answers to 2 dedinal places. Assume that instead of $5,200 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 Tom's net pay? Note: Round yo answers to 2 decimal places. Assume that instead of $5,200 per month Tom earned 411,200 per month. Based on this new level of income Tomis riew federal incorne tax withholding 1542,000 . What amount does Tom pay monthly in FICA payroll taxes? Note: Round vour answers to 2 decimal nlaces, Assume that instead of $5,200 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 5ky Company for January, Year 1 ? February, Year 17 March, Year 17 December, Year 1 ? Note: Round your answers to 2 decimal places

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