Question: Sky Co. employed Tom Mills in 2016. Tom earned $5,100 per month and worked the entire year. Assume the Social Security tax rate is 6

Sky Co. employed Tom Mills in 2016. Tom earned $5,100 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 $900 per month. Use 5.4 percent for the state unemployment tax rate and .06 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 Co. for January 2016? February 2016?

March 2016? December 2016?

b. Assume that instead of $5,100 per month Tom earned $9,600 per month. Answer the questions in Requirement a.

Step by Step Solution

★★★★★

3.41 Rating (176 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a 1 Tom Gross Earnings 510000 Deductions Federal Income Tax 90000 FICA Tax SS 5100 x 6 30600 FICA Tax Medicare 5100 x 15 7650 Total Deductions 128250 Net Pay 381750 2 Toms monthly FICA tax Social Secu... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

443-B-A-L (4964).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

1. What are the advantages and limitations of using Ca 2+ mobilisation assay and cAMP assay to measure the effects of agonists or inhibitors? 2. What are the advantages and limitations of using a...

For the tax year 2011the Social Security tax rate applied to pre-retirement employees is reduced from 6.2% to 4.2%. Compute and explain the tax savings for workers in each of the following...

Assume that the risk-free rate is 6 percent and the expected return on the market is 13 percent. What is the required rate of return on a stock that has a beta of 0.7?

Sky Co. 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...

please help Sky Co. employed Tom Mills in Year 1. Tom earned $5,000 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...

Calculating employee and employer payroll taxes (multipart) Exercise 9-11A (Algo) Calculating employee and employer payroll taxes LO 9-5 Sky Co. employed Tom Mills in Year 1. Tom earned $5,200 per...

Sky Co. 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...

Sky Co. employed Tom Mills In Year 1. Tom earned $5,100 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...

Sky Co. employed Tom Mills In Year 1. Tom earned $5,900 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...

I need help completing all of part B please Check mywrk Exercise 9-11A Calculating employee and employer payroll taxes LO 9-5 3.57 Sky Co. employed Tom Mills in Year 1. Tom earned $5,100 per month...

Your aunt thinks she is an astute investor and offers you some advice, "Ignore companies that have negative earnings. It is impossible to value these companies." Do you agree? How could you derive a...

Prob. 9.170 for the component described in the problem indicated, determine (a) The principal moments of inertia at the origin, (b) The principal axes of inertia at the origin. Sketch the body and...

Which of the following is generally considered an advantage of term loans over corporate bonds? Fixed bond terms after the bond has been issued Speed, or how long it takes to bring the issue to the...

Youre working with Amanda and Lauratwo SMEs from the Animal Life Sciences Division of your company who are experts in veterinary sciences. As their business analyst, youve begun the process of...

Barber Company incurs annual fixed costs of $240,000. Variable costs for Barbers product are $15 per unit, and the sales price is $40 per unit. Barber desires to earn a profit of $160,000. Required...

Narita Corporation produced 50,000 tires and sold them for $80 each during 2014. The company determined that fixed manufacturing cost per unit was $15 per tire. The company reported gross profit of...

Information concerning a product produced by Nicholl Company appears here: Sales price per unit ............... $210 Variable cost per unit .............. $135 Total fixed manufacturing and operating...

Post-Assessment Question 25 According to MAP, a valid reason for requiring a repair or replacement is Select your answer and click "Submit." Part no longer performs its intended function Part no...

can someone help me out with this please Liabilities on the Balance sheet for each of the following situations, indicate the amount shown as a liability on the balance sheet of Kane, INC., at...

solve for C++ (10 points) Write a function, find, that accepts an array of integers, the number of elements in the array, and an integer value, and returns the position (index) of the value in the...