Youngston Company $($a Massachusetts employer$)$ wants to give a holiday bonus check of $$750$ to each employee. Since it wants the check amount to be $$750,$ 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 Genna Fredrich if her earnings for the year are $$55,920.$ Besides being subject to social security taxes and federal income tax $($supplemental rate$),$ a $5\mathrm{.}00\%$ Massachusetts 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 $$750\mathrm{.}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

$

Federal income tax withheld

OASDI tax withheld

HI tax withheld

Massachusetts income tax withheld

Take$-$home bonus check

$

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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. $*$Please note if your net pay is off by $.01,$ add$/$subtract $\mathrm{.}01$ to gross pay as needed.