Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $

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

Intermediate Accounting Volume 2

Authors: Kin Lo, George Fisher

4th Edition

0135220491, 9780135220498

More Books

Students also viewed these Accounting questions

Question

Explain how you would reduce stress at work.

Answered: 1 week ago