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Mattola Company is giving each of its employees a holiday bonus of $100 on December 20 (a non payday). The company wants each employee's check to be $100. The supplemental tax percent is used.
a. What will be the gross amount of each bonus if each employee pays a state income tax of 2.8% (besides the other payroll taxes)? $__________________
b. What would the net amount of each bonus check be if the company did not gross-up the bonus? _____________$
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