Sky Company employed Tom Mills in Year 1. Tom earned $4,900 per month and worked...

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Accounting

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. Tom's federal income tax withholding
amount is $920 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 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 1?
b. Assume that instead of $4,900 per month Tom earned $9,800 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 1?
Complete this question by entering your answers in the tabs below.
Assume that instead of $4,900 per month Tom earned $9,800 per month. What is the total payroll tax expense for Sky
Company for January Year 1? February Year 1? March Year 1? December Year 1?(Round your answers to 2 decimal places.)
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