Determine the amount of the expected bonus

1. Describe the anticipated cost increases when adopting JIT. Describe the anticipated cost decreases when adopting JIT. How should a company determine whether to adopt JIT?

2. Weede Company’s expected gross payroll for the period is $250,000. Assuming that its FICA rate is 7.65 percent, its FUTA rate is 0.8 percent, and its SUTA rate is 5.4 percent, what is the expected payroll tax for the period?

McQuary Enterprises plans to pay its managers a bonus to encourage performance. The bonus rate is 12 percent and the bonus base is net income before bonus or taxes. McQuary’s expected income before bonus or taxes is $400,000. Its tax rate is 30 percent.

Determine the amount of the expected bonus.

Leithead, Inc., expects its gross payroll for the period to be $60,000. It expects to withhold 7.65 percent of gross payroll for FICA taxes, 15 percent for federal income taxes, and 5 percent for state income taxes.

What is the expected net pay for the period?

 

Solution:

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