Dec 18, 2014, President of the Company is paid his annual bonus. This does not affect his insurance coverage, which is base on regular pay. This year, his bonus is $75,000. For Withholding purposes, the bonus is considered a supplemental payment and is added to his gross pay. ($2,307.69) For this pay, he also increased his SIMPLE deduction to $4,000. To determine the federal income tax, Use the Table of allowance Values along with tax table A T-2 to T-4. in calculating tax, do not aggregate to the nearest earnings dollar.
Pay Period: Bi-weekly
No of Allowance: 4
Marital Status : M
Total Earnings: $2307.69 + 75,000 = $77,307.69