Mattola Company is giving each of its employees a holiday bonus of $900 on December 14 (a non payday). The company wants each employee's check to be $900. 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 exactly equals $900.

b. What would the net amount of each bonus check be if the company did not gross-up the bonus?