Damerly Company (a California employer) wants to give a holiday bonus check of $250 to each employee.

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Damerly Company (a California employer) wants to give a holiday bonus check of $250 to each employee. Since it wants the check amount to be $250, 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 $46,910. Besides being subject to social security taxes and federal income tax (supplemental rate), a 7% California income tax must be withheld on supplemental payments.


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Payroll Accounting

ISBN: 978-1133962533

2013 edition

Authors: Bernard J. Bieg, Judith A. Toland

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