Sky Co. employed Tom Mills in Year 1. Tom earned $5,800 per month and worked the...

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Sky Co. employed Tom Mills in Year 1. Tom earned $5,800 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 1.5 percent. Tom's federal income tax withholding amount is $950 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 ofearnings 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 taxes? 3. What is the total payroll tax expense for Sky Co. for January, Year 1? February, Year 1? March, Year 1? December, Year 1? b. Assume that instead of $5,800 per month Tom earned $10,900 per month. Based on this new level of income Tom's new federal income tax withholding is $2.000. Answer the following questions 1. What is Tom's net pay per month? 2. What amount does Tom pey monthly in FlICA payroll taxes? 3. What is the total payroll tax expense for Sky Co. for January, Year 1? February, Year 1? March, Year 1? December, Year 1? Sky Co. employed Tom Mills in Year 1. Tom earned $5,800 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 1.5 percent. Tom's federal income tax withholding amount is $950 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 ofearnings 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 taxes? 3. What is the total payroll tax expense for Sky Co. for January, Year 1? February, Year 1? March, Year 1? December, Year 1? b. Assume that instead of $5,800 per month Tom earned $10,900 per month. Based on this new level of income Tom's new federal income tax withholding is $2.000. Answer the following questions 1. What is Tom's net pay per month? 2. What amount does Tom pey monthly in FlICA payroll taxes? 3. What is the total payroll tax expense for Sky Co. for January, Year 1? February, Year 1? March, Year 1? December, Year 1?

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a1 Calculation of Toms net pay per month Particulars Amount Amount Tom gross earning 5800 Deductions ... View the full answer