A-1 Damerly Company (a Utah employer) wants to give a holiday bonus check of $125 to each employee. Since it wants the check amount to be $125, it will need togross-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 theyear 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 onsupplemental 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 tocalculate exactly to $125.00. Round your calculations and final answers to the nearest cent.As we go to press, the federal income tax rates for 2021 are being determined by budget talks in Washington and not available for publication. Forthis edition, the 2020 federal income tax tables for Manual Systems with Forms W-4 from 2020 or later with Standard Withholding and 2020 FICArates have been used.Gross bonus amountFederal income tax withheldOASDI tax withheldHI tax withheldUtah income tax withheldTake-home bonus checkFeedback200.31 X-50.12 X-12.43 X-2.91 X-10.02 X125.00V

To calculate the gross bonus amount and withholding taxes for John Rolen, first, we need to…

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 200.31 X -50.12 X -12.43 X -2.91 X -10.02 X 125.00

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

A-1

Damerly Company (a Utah employer) wants to give a holiday bonus check of $125 to each employee. Since it wants the check amount to be $125, 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 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 $125.00. Round your calculations and final answers to the nearest cent.
As we go to press, the federal income tax rates for 2021 are being determined by budget talks in Washington and not available for publication. For
this edition, the 2020 federal income tax tables for Manual Systems with Forms W-4 from 2020 or later with Standard Withholding and 2020 FICA
rates have been used.
Gross bonus amount
Federal income tax withheld
OASDI tax withheld
HI tax withheld
Utah income tax withheld
Take-home bonus check
Feedback
200.31 X
-50.12 X
-12.43 X
-2.91 X
-10.02 X
125.00
V

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