What is toms net pay per month and what does he pay in FICA taxes? Exercise 9-11A (Algo) Calculating employee and employer payroll taxes LO 9-5Sky Company employed Tom Mills in Year 1. Tom earned $5,000 per month and worked the entire year. Assume the Social Security taxrate is 6 percent for the first $130,000 of earnings, and the Medicare tax rate is 1.5 percent. Tom's federal income tax withholdingamount is $940 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federal unemployment taxrate on the first $7,000 of earnings per employee.Requireda. 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 Company for January, Year 1? February, Year 1? March, Year 1? December, Year 1?b. Assume that instead of $5,000 per month Tom earned $11,200 per month. Based on this new level of income Tom's new federalincome tax withholding is $2,000. 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 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.Required A1 Required A2Required A3X Answer is not complete.Required B1 Required B2Total Employer PayrollTaxRequired B3What is the total payroll tax expense for Sky Company for January, Year 1? February, Year 1? March, Year 1? December, Year1?Note: Round your answers to 2 decimal places.HHNext >

Exercise 9-11A (Algo) Calculating employee and employer payroll taxes LO 9-5 Sky Company 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 Medicare tax rate is 1.5 percent. Tom's federal income tax withholding amount is $940 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 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 taxes?

Exercise 9-11A (Algo) Calculating employee and employer payroll taxes LO 9-5 Sky Company 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 Medicare tax rate is 1.5 percent. Tom's federal income tax withholding amount is $940 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 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 taxes?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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