our boss approaches you in mid-December and requests that you pay certain employees their gross pay amount as if there were eductions as their year-end bonuses. None of the employees have reached the Social Security wage base for the year and the ompany pays semimonthly.
our boss approaches you in mid-December and requests that you pay certain employees their gross pay amount as if there were eductions as their year-end bonuses. None of the employees have reached the Social Security wage base for the year and the ompany pays semimonthly.
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...
Related questions
Question
![Your boss approaches you in mid-December and requests that you pay certain employees their gross pay amount as if there were no
deductions as their year-end bonuses. None of the employees have reached the Social Security wage base for the year and the
company pays semimonthly.
Required:
What is the gross-up amount for each of the following employees? (The tax rate on bonuses is 22% and no state taxes. Social Security
(6.2%) and Medicare taxes (1.45%) must be added to this rate.)
Note: Round your intermediate calculations and final answers to 2 decimal places.
Employee
Onyx Saint John
Indigo Johnson
Zion Hale
$
$
$
Regular Gross
Pay per Period
1,425
2,400
2,240
Grossed-up
Amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3cd23e71-90ba-481a-b3dc-abda2a1861eb%2F5151ac1c-e9f5-4c47-8dcc-205e7d0cfdf0%2Fycwfcpt_processed.png&w=3840&q=75)
Transcribed Image Text:Your boss approaches you in mid-December and requests that you pay certain employees their gross pay amount as if there were no
deductions as their year-end bonuses. None of the employees have reached the Social Security wage base for the year and the
company pays semimonthly.
Required:
What is the gross-up amount for each of the following employees? (The tax rate on bonuses is 22% and no state taxes. Social Security
(6.2%) and Medicare taxes (1.45%) must be added to this rate.)
Note: Round your intermediate calculations and final answers to 2 decimal places.
Employee
Onyx Saint John
Indigo Johnson
Zion Hale
$
$
$
Regular Gross
Pay per Period
1,425
2,400
2,240
Grossed-up
Amount
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
![PAYROLL ACCT., 2019 ED.(LL)-TEXT](https://www.bartleby.com/isbn_cover_images/9781337619783/9781337619783_smallCoverImage.gif)
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
![PAYROLL ACCT., 2019 ED.(LL)-TEXT](https://www.bartleby.com/isbn_cover_images/9781337619783/9781337619783_smallCoverImage.gif)
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub