Question

Check mywrk Exercise 9-11A Calculating employee and employer payroll taxes LO 9-5 3.57 Sky Co. employed Tom Mills in Year 1. Tom earned $5,100 per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first $110,000 of earnings, and the Medicare tax rate is 1.5 percent. Tom's federal income tax withholding amount is $910 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. points Required a. 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 Co. for January Year 1? February Year 1? March Year 1? December Year 1 b. Assume that instead of $5,100 per month Tom eaned $9.500 per month. Answer the following questions 1. What is Tom's net pay per month? 2. What amount does Tom pay monthly in FICA payrol taxes? 3. What is the total payroll tax expense for Sky Co. for January Year 17 February Year 17 March Year 17 December Year 1 eBook Hint Print Complete this question by entering your answers in the tabs below. Required A3 Required B1 Required 82 Required 83 Required A1 Required A2 Assume that instead of $5,100 per month Tom earned $9,500 per month. What is Tom's net pay? (Round your answers to 21 decimal places.) Net Pay S 7.877 50 January to November (per month) S 8.183.50 December eguired 82 eguired A3 11

I need help completing all of part B please

Answer 1

Answer -

b. Answer -

As per given information

Gross earning = $9500 per month

Social security tax = 6% (for the first $110000 of earnings)

Medicare tax = 1.5%

Federal income tax withholding = $910 per month

State unemployment tax = 5.4% (on first $7000 of earnings per employee)

Federal unemployment tax = 0.6% (on first $7000 of earnings per employee)

1. Answer -

	Net Pay
January tn November (per month)	$7877.50
December	$8117.50

Calculation :

January tn November (per month) :

Gross earnings		$9500
Deductions :
Federal income tax	$910
FICA social security tax ($9500 * 6%)	$570
FICA medicare tax ($9500 * 1.5%)	$142.50
Total deductions		$1622.50
Net Pay		$7877.50

December :

Gross earnings		$9500
Deductions :
Federal income tax	$910
FICA social security tax [($110000 - $104500) * 6%]	$330
FICA medicare tax ($9500 * 1.5%)	$142.50
Total deductions		$1382.50
Net Pay		$8117.50

2. Answer -

	FICA Payroll Tax
January tn November (per month)	$712.50
December	$472.50

Calculation :

January tn November (per month) :

Monthly FICA tax :
Social security tax	$570
Medicare tax	$142.50
Total Monthly FICA tax	$712.50

December :

Monthly FICA tax :
Social security tax	$330
Medicare tax	$142.5
Total Monthly FICA tax	$472.5

3. Answer -

	Total Employer Payroll Tax
January	$1132.50
February	$712.50
March	$712.50
December	$472.50

Calculation :

January :

Sky co. payroll tax expense :
Employer FICA social security tax ($9500 * 6%)	$570
Employer FICA medicare tax ($9500 * 1.5%)	$142.50
Employer state unemployment tax ($7000 * 5.4%)	$378
Employer federal unemployment tax ($7000 * 0.6%)	$42
Total employer payroll tax	$1132.50

February :

Sky co. payroll tax expense :
Employer FICA social security tax ($9500 * 6%)	$570
Employer FICA medicare tax ($9500 * 1.5%)	$142.50
Total employer payroll tax	$712.50

March :

Sky co. payroll tax expense :
Employer FICA social security tax ($9500 * 6%)	$570
Employer FICA medicare tax ($9500 * 1.5%)	$142.50
Total employer payroll tax	$712.50

December :

Sky co. payroll tax expense :
Employer FICA social security tax [($110000 - $104500) * 6%]	$330
Employer FICA medicare tax ($9500 * 1.5%)	$142.50
Total employer payroll tax	$472.50

Note :

FICA Social Security tax in December is limited to 6% * ($110000 − $104500)

Tom had total wages at the end of November

= $9500 * 11 months

= $104500