(Solved): Chapter 9 i. Old Town Entertainment has two employees in Year 1. Clay earns $4,600 per month, and ...

Chapter 9 i. Old Town Entertainment has two employees in Year 1. Clay earns

per month, and Philip, the manager, earns

per month. Neither is paid extra for working overtime. Assume the Social Security tax rate is 6 percent on the first

of earnings and the Medicare tax rate is 1.5 percent on all earnings. The federal income tax withholding is 14 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 Phillip 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

and

Req D Calculate the net pay for both Clay and Philip for March. Calculate the net pay for both Clay and Philip for December. Note: Do not round intermediate calculations and round your answers to 2 decimal places. \table[[,Net Pay],[a. Clay,],[a. Philip,],[b. Clay,],[b. Philip,]]