Mattola Company is giving each of its employees a holiday bonus of $100 on December 13 (a nonpayday). The company wants each employee’s check to be $100. The supplemental tax percent is used.

Nobody has capped for OASDI prior to the bonus check.


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.