Sky Company employed Tom Mills in Year 1. Tom earned $4,900 per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first $110,000 of earnings, and the Medicare tax rate is 1.5 percent. Toms federal income tax withholding amount is $860 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

1. Answer the following questions.
   1. (1) What is Toms net pay per month?
   2. (2) What amount does Tom pay monthly in FICA payroll taxes?
   3. (3) What is the total payroll tax expense for Sky Company for January Year 1? February Year 1? March Year 1? December Year 1?

2. Assume that instead of $4,900 per month Tom earned $9,500 per month. Answer the following questions.
   1. (1) What is Toms net pay per month?
   2. (2) What amount does Tom pay monthly in FICA payroll taxes?
   3. (3) What is the total payroll tax expense for Sky Company for January Year 1? February Year 1? March Year 1? December Year 1?

Rec. 41 Req A2 Req A3 Req B1 Req B2 Req B What is Tom's net pay per month? (Round your answer to 2 decimal places.) Tom's net pay per month Mc Graw Hill Prev 1 of 1 Nex Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Req A3 Req B1 Req B2 Req B3 What amount does Tom pay monthly in FICA payroll taxes? (Round your answer to Tom's monthly FICA tax Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Req B1 Req B2 Reg B3 Assume that instead of $4,900 per month Tom earned $9,500 per month. What is Tom's net pay? (Round your answers to 2 decimal places.) Net Pay January to November (per month) December Activate v Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Req A3 Req B1 Req B2 Req B3 Assume that instead of $4,900 per month Tom earned $9,500 per month. What amount does Tom pay monthly in FICA payroll taxes? (Round your answers to 2 decimal places.) FICA Payroll Tax January to November (per month) December ( Req B1 Req B3 > Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Req A3 Req B1 Reg B2 Req B3 Assume that instead of $4,900 per month Tom earned $9,500 per month. What is the total payroll tax expense for Sky Company for January Year 17 February Year 12 March Year 17 December Year 1? (Round your answers to 2 decimal places.) Total Employer Payroll Tax anuary February March December RegB3