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Question - Mattola Company is giving each of its employees a holiday bonus of $95 on December 16 (a non payday). The company wants each employee's check to be $95. The supplemental tax percent is used.
Round your calculations and answers to the nearest cent.
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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