Sky Company employed Tom Mills in Year 1. Tom earned $5,900 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 $870 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 other information - Tom's net pay per month= 4587.50 - tom's monthly FICA tax= 442.50 -total payroll tax expense for january, feb, march and dec. year 1= jan= 796.50, feb = 508.50, march= 442.50, dec= 442.50
Sky Company employed Tom Mills in Year 1. Tom earned $5,900 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 $870 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 other information - Tom's net pay per month= 4587.50 - tom's monthly FICA tax= 442.50 -total payroll tax expense for january, feb, march and dec. year 1= jan= 796.50, feb = 508.50, march= 442.50, dec= 442.50
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 7E
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Question
Sky Company employed Tom Mills in Year 1. Tom earned $5,900 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 $870 per month. Use 5.4 percent for the state
other information
- Tom's net pay per month= 4587.50
- tom's monthly FICA tax= 442.50
-total payroll tax expense for january, feb, march and dec. year 1= jan= 796.50, feb = 508.50, march= 442.50, dec= 442.50
Transcribed Image Text:Assume that instead of $5,900 per month Tom earned $11,400 per month. Based on this new level of income Tom's new
federal income tax withholding is $1,800. What is Tom's net pay?
Note: Round your answers to 2 decimal places.
January to November (per month)
December
Net Pay
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