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.) Regular Gross Pay per Period Grossed-up Employee Amount Yves Saint John 2$ 1,725 Kim Johnson $ 2,720 Michael Hale $ 2,592

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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How do I figure the gross up amount and regular gross pay per period?

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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.)
Regular Gross
Pay per Period
Grossed-up
Employee
Amount
Yves Saint John
1,725
Kim Johnson
2,720
Michael Hale
24
2,592
1 of 10
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Transcribed Image Text:ext/map/index.html?_con=con&external_browser%3D08launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question 5- Homework i Saved Help 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.) Regular Gross Pay per Period Grossed-up Employee Amount Yves Saint John 1,725 Kim Johnson 2,720 Michael Hale 24 2,592 1 of 10 Next Prev ..... ...... .... ..... 70°F Partly cloudy %24
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