Damerly Company (a Utah employer) wants to give a holiday bonus check of $275 to each employee. Since it wants the check amount to be $275, 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 John Rolen if his cumulative earnings for the year are $49,950. Besides being subject to social security taxes and federal income tax (supplemental rate), a 5.2% Utah 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 $250.00. Round your calculations and final answers to the nearest cent. Gross bonus amount $ 320.78.

Answer rating: 100% (QA)

To calculate the withholding taxes and the gross amount of the bonus to be made to John Rolen we nee... View the full answer