Question
Your boss approaches you in mid-December and requests that you pay certain employees their gross pay amount as if there were no deductions as their
Your boss approaches you in mid-December and requests that you pay certain employees their gross pay amount as if there were no deductions as their Christmas bonuses. None of the employees have reached the Social Security wage base for the year. What is the gross-up amount for each of the following employees? The tax rate on bonuses is 28%. The Social Security (6.2%) and Medicare taxes (1.45%) must be added to this rate. Yves St. John, regular gross pay per period $1425 Kim Johnson, regular gross pay per period $2,400 Michael Hale, regular gross pay per period $2,240
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started