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Sky Company employed Tom Mills in Year 1. Tom earned $5,900 per month and worked the entire year. Assume the Social Security tax rate
Sky Company employed Tom Mills in Year 1. Tom earned $5,900 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. Tom's federal income tax withholding amount is $890 per month 5.4 percent for the state unemployment tax rate and 06 percent for the federal unemployment tax rate on the first $7,000 of egs 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 payroll taxes? (3) What is the total payroll tax expense for Sky Company for January Year 1? February Year 1? March Year 17 December Year 1? b. Assume that instead of $5,900 per month Tom earned $9,700 per month. 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 17 Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Req 81 Reg 82 Req B3 What is Tom's net pay per month? (Round your answer to 2 decimal places.) Tom's not pay per month
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