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Old Town Entertainment has two employees in Year 1. Clay earns $3,600 per month, and Philip, the manager, earns $10,600 per month. Neither is paid extra for working overtime. Assume the Social Security tax rate is 6 percent on the first $130,000 of earnings and the Medicare tax rate is 1.5 percent on all earnings. The federal income tax withholding is 14 percent of gross earnings for Clay and 19 percent for Philip. Both Clay and Philip have been employed all year. Required a. Calculate the net pay for both Clay and Philip for March. b. Calculate the net pay for both Clay and Philip for December. c. Is the net pay the same in March and December for both employees? d. What amounts will Old Town report on the Year 1 W-2s for each employee? Calculate the net pay for both Clay and Philip for March. Calculate the net pay for both Clay and Philip for December. (Do not round intermediate calculations and round your answers to 2 decimal places.) Is the net pay the same in March and December for both employees? Is the net pay the same in March and December for both employees? What amounts will old Town report on the rear 1 W-2s for each employee? (Do not round intermediate calculations.) \begin{tabular}{|l|l|l|} \hline Clay & & \\ \hline Box 1 & Wages, lips, and other compensation & \\ \hline Box 2 & Federal income tax withheld & \\ \hline Box 3 & Social security wages & \\ \hline Box 4 & Social seourity tax withheld & \\ \hline Box 5 & Medicare wages and tips & \\ \hline Box 6 & Medicare tax withheld & \\ \hline & & \\ \hline Philip & & \\ \hline Box 1 & Wages, tips, and other compensation & \\ \hline Box 2 & Federal income tax withheld \\ \hline Box 3 & Social security wages & \\ \hline Box 4 & Social security tax withheld \\ \hline Box 5 & Medicare wages and tips \\ \hline Box 6 & Medicare tax withheld & \\ \hline \end{tabular}

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