Question
Damerly Company (a Utah employer) wants to give a holiday bonus check of $475 to each employee. Since it wants the check amount to be
Damerly Company (a Utah employer) wants to give a holiday bonus check of $475 to each employee. Since it wants the check amount to be $475, it will need to gross-up the amount of the bonus. Calculate the withholding taxes and the gross amount of the bonus to be made to John Rolen if his cumulative earnings for the year are $46,910. Besides being subject to social security taxes and federal income tax (supplemental rate), a 4.95% Utah income tax must be withheld on supplemental payments. Enter deductions beginning with a minus sign (-). You may need to adjust by a penny (subtract or add) to the gross amount to get net pay to calculate exactly to $475.00. Round your calculations and final answers to the nearest cent. Gross bonus amount $fill in the blank 1
Federal income tax withheld fill in the blank 2
OASDI tax withheld fill in the blank 3
HI tax withheld fill in the blank 4
Utah income tax withheld fill in the blank 5
Take-home bonus check $fill in the blank 6
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started