Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

-0.25 (supplemental W/H rate)-0.062 (OASOI)-0.0145 (HI) $4,000 B. $,939.12 grossed-up bonus 0.6735 Gross bonus amount Federal Income Tax withheld OASDI tax withheld Hl tax withheld

image text in transcribed
-0.25 (supplemental W/H rate)-0.062 (OASOI)-0.0145 (HI) $4,000 B. $,939.12 grossed-up bonus 0.6735 Gross bonus amount Federal Income Tax withheld OASDI tax withheld Hl tax withheld C. 5,939.13 ,484.78 368.23 86.12 4,000.00 Take-home bonus check If state or local taxes apply, they must also be included in the formula Need to add $0.01 to $5,939.12 in order to arrive at s4,oo0.00 (due bo rounding). each of its employees a holiday bonus of s1,000 on December 15 (a mon paydey). The company wants each emplayee's check to be $1,000. The supplemental Mattola Company is glving Nobody has capped for OASDI prior to the bdnus check. a. what will be the gross amount o, each bonus if 6ach employee pays a state ineome tax of 2ms (besides the other parel tamy? 1,028.80 x b. What would the net amount of each bonus check be if the company did not gross-uo the bonus? 972 x Take the resulting gross pay and multiply by the respective tax rates to prove net pay. "Please nobe your net pay is off by 0.05, pleane add 0.01 to gross pay Use 259%PTT ercentage on po b. Gross pay minus deductions-net pay. Use 25% as FIT percentage on supplemental earmgs. desechon psm man that wi be d (represeting 100%) mius al tax rate (using a. Divide desired net pay by: 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Managerial Accounting Version 3.0

Authors: Kurt Heisinger, Joe Ben Hoyle

1st Edition

1453399410, 9781453399415

More Books

Students also viewed these Accounting questions