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. Required: What is the gross-up amount for each of the following employees? (The tax rate on bonuses is 22 percent and no state taxes. Social Security (6.2%) and Medicare taxes (1.45%) must be added to this rate) (Round your intermediate calculations and final answers to 2 decimal places.) Employee Yves Saint John Kim Johnson Michael Hale $ $ $ Regular Gross Pay per Period 2.500 3,300 3,178 Grossed up Amount
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. Required: What is the gross-up amount for each of the following employees? (The tax rate on bonuses is 22 percent and no state taxes. Social Security (6.2%) and Medicare taxes (1.45%) must be added to this rate) (Round your intermediate calculations and final answers to 2 decimal places.) Employee Yves Saint John Kim Johnson Michael Hale $ $ $ Regular Gross Pay per Period 2.500 3,300 3,178 Grossed up Amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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