Example 4-12GROSSING-UP. Cotter Company wants to award a $4,000 bonus to Donna D'Amico. In addition, it wants the net bonus payment to equal $4,000.Assuming D'Amico is still under the OASDI/FICA limit, the calculation would be:A.$4,0001 -0.22 (Supplemental W/H rate) - 0.062 (OASDI) - 0.0145 (HI)$4,000B.$5,685.86 grossed-up bonus0.7035C.Gross bonus amount$5,685.85*Federal income tax withheld1,250.89352.5282.44$4,000.00OASDI tax withheldHI tax withheldTake-home bonus checkIf state or local taxes apply, they must also be included in the formula.*Need to subtract $0.01 from $5,685.86 in order to arrive at $4,000.00 (due to rounding).Damerly Company (a Utah employer) wants to give a holiday bonus check of $175 to each employee. Since it wants the check amount to be $175, it will need to gross-up the amount of the bonus. Calculate the withholding taxes and the gross amount ofthe 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 4.95% 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 $175.00. Round your calculations and final answers to the nearestcent.As we go to press, the federal income tax rates for 2024 are being determined by budget talks in Washington, and are not available for publication. For this edition, the 2023 federal income tax tables for Manual Systems withForms W-4 From 2020 or Later with Standard Withholding and 2023 FICA rates have been used.Gross bonus amountFederal income tax withheldOASDI tax withheldHI tax withheldUtah income tax withheldTake-home bonus check

(Supplemental W/H rate) – 0.22(OASDI) – 0.062(HI) -0.0145(Utah income tax withheld) - 0.0495Gross…

Answered: Gross bonus amount Federal income tax…

Gross bonus amount Federal income tax withheld OASDI tax withheld HI tax withheld Utah income tax withheld Take-home bonus check

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Employee SUTA Contributions Some states impose a contributions requirement on employees in addition to the contributions made by the employer. Computing an employee's withholding is computationally no different than an employer's... taxable wages (those under the cap) times the state rate for employees. Let's investigate an individual that lives in New Jersey whose monthly wages equal $2,470 and whose earnings to date have not exceeded the New Jersey cap of $ Description Calculation 1. Looking at the chart, in the Employee column, it provides the employee withholding rate (0.705% in New Jersey) and the withholding taxable wage cap. 2. Taxable wages 3. New Jersey employee rate 4. Employee SUTA tax, rounded to the nearest cent $2,470 0.705% $17.41 Making It Work Using the amalgamated State SUTA chart, complete the following. Note: Round all amounts to the nearest cent. Akia Hayden lives in Alaska and has wages of $725.33 per week and has not exceeded the SUTA cap of $ Employee: Hayden,…
Federal income taxes are allowed as an itemized deduction but are limited to $10,000? Ture or false
Question text The totals from the first payroll of the year are shown below. Total Earnings FICA OASDI FICA HI FIT W/H State Tax Union Dues Net Pay $36,195.10 $2,244.10 $524.83 $6,515.00 $361.95 $500.00 $26,049.22 Journalize the entry to deposit the FICA and FIT taxes.
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Section 529 college savings plans are state-sponsored. True Question 2 oo False Qualifying contributions to personal retirement accounts are subtracted as oooo adjustments to income itemized deductions exclusions tax credits Question 3 Which of the following types of taxes is deductible for federal income tax purposes? Federal income taxes Real estate property taxes Federal Social Security taxes Federal excise taxes on tires
all of the following are employer payroll taxes except what
Question 5- Estate planning Ben is 29 years of age. He has total accumulated superannuation balance of $150,000. As a member of the fund, he is automatically eligible for $100,000 standard group term life insurance, available to all employees. Ben owns no other assets. He has recently married Emma, but they do not have any children yet. a. Does Ben need a will? Explain your response b. What total amount would be paid out from Ben's superannuation fund in the event of his death? c. Who are the possible beneficiaries of Ben's superannuation fund and would they likely be classed as dependants or non-dependants for superannuation purposes?. d. What will the superannuation fund trustee do if Ben does not nominate any death benefit beneficiary(is) in the event of his death2 e. Is the trustee bound if Ben completes a non-binding nomination? f. How would Ben's estate be distributed if he has no will in place? g. Assume it is three years on and Ben now has a two-year-old daughter, Tiffany.…
PSb 3-4 Calculate Federal Income Tax Withholding Using the Percentage Method (pre-2020 Form W-4) For each employee listed. use the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020 Form W-4 to the Federal Tax Tables in Appendix A of your textbook. Note: For simplicity. all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 1. Juan Hoffman (single; 2 federal withholding allowances) earned weekly gross pay of $445. Federal income tax withholding=$
Exercise 16-10 (Algo) Calculate income tax amounts under various circumstances; financial statement effects [LO16-2, 16-3] Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: ($ in thousands) Taxable income Future deductible amounts Future taxable amounts. Balance(s) at beginning of the year: Deferred tax asset Deferred tax liability The enacted tax rate is 25%. Required: Situation 1 2 3 4 $ 112 $ 244 $ 252 $ 344 16 20 20 16 16 56 2 16 8 2 For each situation, determine the following: Note: Enter your answers in thousands rounded to one decimal place (i.e. 1,200 should be entered as 1.2). Negative amounts should be indicated by a minus sign. Leave no cell blank, enter "O" wherever applicable. a. Income tax payable currently. b. Deferred tax asset-ending balance. c. Deferred tax asset-change. d. Deferred tax liability-ending balance. e. Deferred tax liability change. f. Income tax…
PSb 3-4 Calculate Federal Income Tax Withholding Using the Percentage Method (pre-2020 Form W-4) For each employee listed, use the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020 Form W-4. Refer to the Federal Tax Tables in Appendix A of your textbook. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. Publication 15-T (2020) 1: Juan Hoffman (single; 2 federal withholding allowances) earned weekly gross pay of $445. Federal income tax withholding = $ 2: William Harrison (single; 1 federal withholding allowance) earned biweekly gross pay of $990. He contributes $75 to a flexible spending account during the period. Federal income tax withholding = $ 3: Loretta Goulet (married; 3 federal withholding allowances) earned monthly gross pay of $2,800. For each period, she makes a 401(k) contribution of 14% of gross pay. Federal…