Question

6Q… Chapter 10 8 Q 9 Quiz Saved Help Save Old Town Entertainment has two employees in Year 1. Clay earns $4,800 per month, and Philip, the manager, earns $10,800 per month. Neither is paid extra for working overtime. Assume the Social Security tax rate is 6 percent on the first $110,000 of earnings and the Medicare tax rate is 1.5 percent on all earnings. The federal income tax withholding is 17 percent of gross earnings for Clay and 21 percent for Philip. Both Clay and Philip have been employed all year. Required a. Calculate the net pay for both Clay and Philip for March b. Calculate the net pay for both Clay and Philip for December. c. Is the net pay the same in March and December for both employees? d. What amounts will Old Town report on the Year 1 W-2s for each employee? Complete this question by entering your answers in the tabs below. Req A and B Reqc Req D Calculate the net pay for both Clay and Philip for March. Calculate the net pay for both Clay and Philip for December (Do not round intermediate calculations and round your answers to 2 decimal places.) Net Pay b. Clay Philip Req c> Required a. Calculate the net pay for both Clay and Philip for March. b. Calculate the net pay for both Clay and Philip for December. C. Is the net pay the same in March and December for both employees? d. What amounts will Old Town report on the Year 1 W-2s for each employee? Complete this question by entering your answers in the tabs below. Req A and BReq C Req D Is the net pay the same in March and December for both employees? Is the net pay the same in March and December for both employees? KReq A and B Req D iUIT Dy eneering your answers in the tabs below. Req D Req A and B Req C What amounts will Old Town report on the Year 1 W-2s for each employee? (Do Amount Appearing on W-2 for Year 1 Clay Wages, tips, and other compensation Box 1 Box 2Federal income tax withheld Box 3 Social security wages Box 4 Social security tax withheld Box 5 Medicare wages and tips Box 6Medicare tax withheld Philip 5 of 5

Answer 1

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