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 2,025 3,040 2,944 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 2,025 3,040 2,944 Grossed-up Amount

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 73TA

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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 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
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