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Old town entertainment has two employees in year 1. clay earns $4,300 per month, and philip, the manager, earns $10,700 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 15 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?

Respuesta :

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It is to be noted that:

  • the March Net Pay for Clay and Philip are $ 9,997.5 and $ 23,227.5 respectively;
  • December Net Pay for both Clay and Philip are $39,990 and $ 92,910 respectively.

Is the net pay the same in March and December for both employees?

No. The net pay isn't the same in March and December for both employees.

What is Net Pay?

Net Pay refers to the balance of one's income after all deductibles have been removed.

Deductibles include:

  • Social Security Tax
  • Federal Income Tax
  • Medicare Tax etc.

See the attache and Learn more about Net Pay at:
https://brainly.com/question/13793671

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