Exercise $9-11$A $($Algo$)$ Calculating employee and employer payroll taxes LO $9-5$

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 $1\mathrm{.}5$ percent. Tom's federal income tax withholding

amount is $$870$ per month. Use $5\mathrm{.}4$ percent for the state unemployment tax rate and $0\mathrm{.}6$ percent for the federal unemployment tax

rate on the first $$7,000$ of earnings per employee.

Required

a$.$ Answer the following questions:

What is Tom's 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 $1?$

b$.$ Assume that instead of $$5,300$ per month Tom earned $$11,300$ per month. Based on this new level of income Tom's new federal

income tax withholding is $$2,000.$ Answer the following questions.

What is Tom's 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.

What is Tom's net pay per month?

Note: Round your answer to $2$ decimal places.Exercise $9-11$A $($Algo$)$ Calculating employee and employer payroll taxes LO $9-5$

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 $1\mathrm{.}5$ percent. Tom's federal income tax withholding

amount is $$870$ per month. Use $5\mathrm{.}4$ percent for the state unemployment tax rate and $0\mathrm{.}6$ percent for the federal unemployment tax

rate on the first $$7,000$ of earnings per employee.

Required

a$.$ Answer the following questions:

What is Tom's 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 $1?$

b$.$ Assume that instead of $$5,300$ per month Tom earned $$11,300$ per month. Based on this new level of income Tom's new federal

income tax withholding is $$2,000.$ Answer the following questions.

What is Tom's 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.

What amount does Tom pay monthly in FICA taxes?

Note: Round your answer to $2$ decimal places.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 $1\mathrm{.}5$ percent. Tom's federal income tax withholding

amount is $$870$ per month. Use $5\mathrm{.}4$ percent for the state unemployment tax rate and $0\mathrm{.}6$ percent for the federal unemployment tax

rate on the first $$7,000$ of earnings per employee.

Required

a$.$ Answer the following questions:

What is Tom's 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 $1?$

b$.$ Assume that instead of $$5,300$ per month Tom earned $$11,300$ per month. Based on this new level of income Tom's new federal

income tax withholding is $$2,000.$ Answer the following questions.

What is Tom's 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.

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

$1?$

Note: Round your answers to $2$ decimal places.