50.1K

Verified Solution

Link Copied!

Sky Company employed Tom Mills in Year 1. Tom earned $5,300 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. Toms federal income tax withholding amount is $910 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

Answer the following questions:

What is Toms net pay per month?

What amount does Tom pay monthly in FICA taxes?

What is the total payroll tax expense for Sky Company for January, Year 1? February, Year 1? March, Year 1? December, Year 1?

Assume that instead of $5,300 per month Tom earned $11,400 per month. Based on this new level of income Toms new federal income tax withholding is $1,800. Answer the following questions.

What is Toms net pay per month?

What amount does Tom pay monthly in FICA payroll taxes?

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. Assume that instead of $5,300 per month Tom eamed $11,400 per month. Based on this new lewel of inconse Tom's new federal income tax withholding is $1,800. What is Tom's net pay? Note: Round your answers 402 decimal places. Complete this question by entering your answers in the tabs below. Assume that instead of 35,300 per month Tom earned 311,400 per month. Based on this new level of income Tom's nee federal income tax withholding is $1,800. What is the total payroll tax erpense for Sky Company for January, Year 17 Febeuacy, Year 17 March, Year 17 December, Year 17 Note: Reund your answers to 2 decimal places. Cersplete this question by entering your answeis in the tabs below

Answer & Explanation Solved by verified expert

See Answer