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 1,725 Grossed-up Amount Employee Yves Saint John $ Kim Johnson $ 2,720 Michael Hale 2$ 2,592

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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How to compute pay for bonuses?

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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
Amount
Employee
Yves Saint John
1,725
Kim Johnson
2,720
Michael Hale
2,592
%24
%24
%24
Transcribed Image Text:te - Bing x @ Wallace State Community Colleg X Content Question 1-Chapter 5- Homev. X Assignment Print View https://ezto.mheducation.com/ext/map/index.html?_con3Dcon&external_browser%3D0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/ques r 5- Homework i Saved He 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 Amount Employee Yves Saint John 1,725 Kim Johnson 2,720 Michael Hale 2,592 %24 %24 %24
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