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.

As we go to press, the federal income tax rates for 2023 are being determined by budget talks in Washington, and are not available for publication. For this edition, the 2022 federal income tax tables for Manual Systems with Forms W-4 from 2020 or Later with Standard Withholding and 2022 FICA rates have been used.

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	$475

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Divide desired net pay by: 1 (representing 100%) minus all tax rates (convert to decimals) that will be deducted from gross pay. This will give the required gross pay needed to give desired net pay. (Use 22% as FIT percentage on supplemental earnings.) Take the resulting gross pay and multiply by the respective tax rates to prove net pay.