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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.) (Round your intermediate calculations and final answers to 2 decimal places.)
Employee | Regular Gross Pay | Grossed- Up Amount |
Yves St, John | $1500 | |
Kim Johnson | $2480 | |
Michael Hale | $2328 |
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