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In: AccountingExample 4-12GROSSING-UP. Cotter Company wants to award a$4,000 bonus to Donna D'Amico. In addition,...Example 4-12GROSSING-UP. Cotter Company wants to award a$4,000 bonus to Donna D'Amico. In addition, it wants the net bonuspayment to equal $4,000. Assuming D'Amico is still under theOASDI/FICA limit, the calculation would be:A.$4,0001 – 0.22 (supplemental W/H rate) – 0.062 (OASDI) – 0.0145(HI)B.$4,000= $5,685.86 grossed-up bonus0.7035C.Gross bonus amount$5,685.85*Federal Income Tax withheld1,250.89OASDI tax withheld352.52HI tax withheld82.44Take-home bonus check$4,000.00If state or local taxes apply, they must also be included in theformula.*Need to subtract $0.01 from $5,685.86 in order to arrive at$4,000.00 (due to rounding).Mattola Company is giving each of its employees a holiday bonusof $900 on December 13, 20-- (a nonpayday). The company wants eachemployee's check to be $900. The supplemental tax percent isused.Nobody has capped for OASDI prior to the bonus check.a. What will be the gross amount of each bonusif each employee pays a state income tax of 2.8% (besides the otherpayroll taxes)? You may need to add one penny to the gross so thatnet bonus exactly equals $900. Round your calculations andfinal answers to the nearest cent.$b. What would the net amount of each bonuscheck be if the company did not gross-up the bonus? Roundyour intermediary calculations to the nearest cent.$