Damerly Company (a Utah employer) wants to give a holiday bonus check of $200 to each employee. Since it wants the check amount to be $200, 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 5% Utah income tax must be withheld on supplemental payments.

Enter deductions beginning with a minus sign (-).

Gross bonus amount $

Federal income tax withheld

OASDI tax withheld

HI tax withheld

Utah income tax withheld

Take-home bonus check $

Question

Damerly Company (a Utah employer) wants to give a holiday bonus check of $200 to each employee. Since it wants the check amount to be $200, 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 5% Utah income tax must be withheld on supplemental payments.

Enter deductions beginning with a minus sign (-).

Gross bonus amount	$
Federal income tax withheld
OASDI tax withheld
HI tax withheld
Utah income tax withheld
Take-home bonus check	$

Accepted Answer

The Answer is in the image, click to view ...

Question

Damerly Company (a Utah employer) wants to give a holiday bonus check of $200 to each employee. Since it wants the check amount to be

Step by Step Solution

Step: 1

Get Instant Access with AI-Powered Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Students also viewed these Finance questions

Question

Question

Question

Question

Question

Question

Question

Question

Question