Question
Youngston Company (a Utah employer) wants to give a holiday bonus check of $750 to each employee. Since it wants the check amount to be
Youngston Company (a Utah 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% Utah income tax must be withheld on supplemental payments.
Enter all deductions as negative amounts. Round your calculations and final answers to the nearest cent.
Note:The Take-home bonus check should result in an even dollar amount (e.g. $10.00). If a cent needs to be added to obtain that result, add it to the Gross bonus amount.
| Gross bonus amount | $ |
| Federal income tax withheld | |
| OASDI tax withheld | |
| HI tax withheld | |
| Utah income tax withheld | |
| Take-home bonus check | $ |
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Accounting
Authors: Carl S Warren, James M Reeve, Jonathan Duchac
24th Edition
0538475005, 9780538475006
