
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Harrington Company is giving each of its employees a holiday bonus of $250 on December 13, 20-- (a nonpayday). The company wants each employee's check to be
$250. The supplemental tax percent is used.
Nobody has capped for OASDI prior to the bonus check.
You may need to add one penny to the gross so that net bonus is exactly $100.00. Round your calculations and final answers to the nearest cent.
As we go to press, the federal income tax rates for 2024 are being determined by budget talks in Washington, and are not available for publication.
For this edition, the 2023 federal income tax tables for Manual Systems with Forms W-4 From 2020 or Later with Standard Withholding and 2023
FICA rates have been used.
a. What will be the gross amount of each bonus if each employee pays a state income tax of 3.01% (in addition to the other payroll taxes)? Round your
calculations and final answers to the nearest cent.
388.56 X
b. What would the net amount of each bonus check be if the company did not gross-up the bonus? Round your intermediary calculations to the nearest cent.
388.56 X
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