Ask Question
22 October, 07:27

mattola company is giving each of its employees a holiday bonus of $100 on December 15 (a non payday) the company wants each employee's check to be $100. The supplemental tax percent is used. A. What will the gross amount of each bonus if each employee pays a state income tax of 2.8 % (besides the other payroll taxes) and B. What would the net amount of each bonus check be if the company did not gross-up the bonus?

+2
Answers (1)
  1. 22 October, 10:48
    0
    A. the gross amount will be 102,8 dollars

    B. The net amount will be 97,2 dollars

    Explanation: if the company wants every employee to recieve 100 dollars after taxes they need to add the supplemental tax percent (1+0,028)

    If the company is not withholding the tax then the employees will recieve a check of 10o dollar but have to pay 2,8 dollars as a state income tax, then the net amount is 97,2 dollars
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “mattola company is giving each of its employees a holiday bonus of $100 on December 15 (a non payday) the company wants each employee's ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers