Harrington Company is giving each of its employees a holiday bonus of $250 on December 20 (a non pay day). The company wants each employee's check to be $250. The supplemental tax percent is used.
a. What will be the gross amount of each bonus if each employee pays a state income tax of 3.01% (besides the other payroll taxes)? $____________
b. What would the net amount of each bonus check be if the company did not gross-up the bonus? $__________