Calculate the gross pay amount that would result in $3,700 paid to Vicky.
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 51P: Darrell is an employee of Whitneys. During the current year, Darrells salary is 136,000. Whitneys...
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Vicky Le, an employee of Sweet Shoppe Industries, receives a bonus of $3,700 for her stellar work. Her boss wants Vicky to receive $3,700 on the check. She contributes 3 percent of her pay in a pre-tax deduction to her 401(k).
Required:
Calculate the gross pay amount that would result in $3,700 paid to Vicky. (The tax rate on bonuses is 22 percent. Social Security (6.2%) and Medicare taxes (1.45%) must be added to this rate.) (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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