Youngston company a utah employer wants to give a holiday


Youngston Company (a Utah employer) wants to give a holiday bonus check of $750 to each employee. Since it wants the check amount to be $750, it will need to gross-up the amount of the bonus. Calculate the withholding taxes and the gross amount of the bonus to be made to Genna Fredrich if her earnings for the year are $55,920. Besides being subject to social security taxes and federal income tax (supplemental rate), a 5% Utah income tax must be withheld on supplemental payments. OASDI is .062 and HI is .0145. Federal income tax rate is 25%.

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Financial Management: Youngston company a utah employer wants to give a holiday
Reference No:- TGS01183681

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