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what is the answer for all of them? Sky Company employed Tom Mills in Year 1. Tom earned $5,400 per month and worked the entire
what is the answer for all of them?
Sky Company employed Tom Mills in Year 1. Tom earned $5,400 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 $870 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 $5,400 per month Tom earned $11,300 per month, Based on this new level of income Tom's new federal income tax withholding is $2,200. Answer the following questions. 1. What is Tom's net pay per month? 2. What amount does Tom pay monthly in FICA paytoll 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 ? Complete this question by entering your answers in the tabs below. What is Tom's net pay per month? Notes Round your answer to 2 decimal places Step by Step Solution
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