Old Town Entertainment has two employees in Year Clay earns $ per month, and Philip, the manager, earns $ per month. Neither is paid extra for working overtime. Assume the Social Security tax rate is

percent on the first $ of earnings and the Medicare tax rate is  percent on all earnings. The federal income tax withholding is  percent of gross earnings for Clay and  percent for Philip. Both Clay and Philip have

been employed all year. 

 

Required

Calculate the net pay for both Clay and Philip for March.

Calculate the net pay for both Clay and Philip for December.

Is the net pay the same in March and December for both employees?

What amounts will Old Town report on the Year Ws for each employee?

Answer rating: 100% (QA)

Old Town Entertainment Net Pay and Payroll Taxes Year 1 Employee Information Clay Monthly Salary 3600 Federal Withholding Rate 15 Philip Manager Month... View the full answer