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 with held on supplemental payments. 

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Accounting Basics: Youngston company a utah employer wants to give a holiday
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