Sky Co. employed Tom Mills in Year 1. Tom earned $5,300 per month and worked the entire yearAssume 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 $890 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. Assume that instead of $5,300 per month Tom earned $11,200 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 from January - November. And net pay for December. 2. What amount does Tom pay monthly in FICA payroll taxes from January - November. And December. 3. What is the total payroll tax expense for Sky for January Year 1? February Year 1, March Year 1, December Year 1?
Sky Co. employed Tom Mills in Year 1. Tom earned $5,300 per month and worked the entire yearAssume 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 $890 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. Assume that instead of $5,300 per month Tom earned $11,200 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 from January - November. And net pay for December. 2. What amount does Tom pay monthly in FICA payroll taxes from January - November. And December. 3. What is the total payroll tax expense for Sky for January Year 1? February Year 1, March Year 1, December Year 1?
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 2PB
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Sky Co. employed Tom Mills in Year 1. Tom earned $5,300 per month and worked the entire yearAssume 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 $890 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.
Assume that instead of $5,300 per month Tom earned $11,200 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 from January - November. And net pay for December.
2. What amount does Tom pay monthly in FICA payroll taxes from January - November. And December.
3. What is the total payroll tax expense for Sky for January Year 1? February Year 1, March Year 1, December Year 1?
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