Question
Mattola Company is giving each of its employees a holiday bonus of $100 on December 13 (a nonpayday). The company wants each employee's check to
Mattola Company is giving each of its employees a holiday bonus of $100 on December 13 (a nonpayday). The company wants each employee's check to be $100. The supplemental tax percent is used. Nobody has capped for OASDI prior to the bonus check. a. What will be the gross amount of each bonus if each employee pays a state income tax of 2.8% (besides the other payroll taxes)? You may need to add one penny to the gross so that net bonus is exactly $100.00. Round your calculations and final answers to the nearest cent. $ 154.93
b. What would the net amount of each bonus check be if the company did not gross-up the bonus? $ 64.56
These answers are wrong and i do not see what im doing wrong
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