Mega Mart has two employees in 2010. Marsha earns ($ 4,200) per month and Tom, the manager,

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Mega Mart has two employees in 2010. Marsha earns \(\$ 4,200\) per month and Tom, the manager, earns \(\$ 10,000\) per month. Neither is paid extra if they work overtime. Assume the Social Security tax rate is 6 percent on the first \(\$ 110,000\) of earnings and the Medicare tax rate is 1.5 percent on all earnings. The federal income tax withholding is 15 percent of gross earnings for Marsha and 20 percent for Tom. Both Marsha and Tom have been employed all year.

Required

a. Calculate the net pay for both Marsha and Tom for March.

b. Calculate the net pay for both Marsha and Tom for December.

c. Is the net pay the same in March as December for both employees? Why or why not?

d. What amounts will Mega Mart report on the \(2010 \mathrm{~W}-2 \mathrm{~s}\) for each employee?

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