Question
Carla's year-to-date earning are $1,500,00 as reported on her las monthly pay stub. Carla's employer wants to provide her a bonus of $700,00 separate from
Carla's year-to-date earning are $1,500,00 as reported on her las monthly pay stub. Carla's employer wants to provide her a bonus of $700,00 separate from her regular pay. She previously received a bonus of $1,000,000 doing the current year. Carla's employer will gross-up her bonus such that she does not need to be burdened with the additional taxes related to the bonus. What will the total gross-up bonus amount be? Her employer will create the $700,00 bonus as a supplemental pay for federal and state purposes. Her employer uses a state supplemental pay rate of 4.95%.
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