Copy of Bonus Terms

Copy of Bonus Terms - Net Income = $500,000 45,455 181,818...

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Bonus Terms Bonuses can be for key executives or for all employees (profit-share plans). They can be simple formulas or fairly complicated. NIB B&T = $500,000 Tax Rate = 40% Bonus = 10% Bonus = 10% (500,000) = $50,000 Tax = 40% (500,000 – 50,000) = $180,000 Net Income = $500,000 – 50,000 – 180,000 = $270,000 2. Bonus = Bonus = 10% (500,000 – Bonus) Bonus = 50,000 – 0.1 Bonus 1.1 Bonus = 50,000 Bonus = $45, 455 Tax = 40% ($500,000 – 45,455) Tax = $181,818
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Unformatted text preview: Net Income = $500,000 45,455 181,818 = 272,727 3. Bonus = 10% (NIB B&T Bonus Tax) Bonus = 10% (500,000 - Bonus Tax) Tax = 40% (NIB B&T Bonus) Tax = 40% (500,000 Bonus) Bonus = 10% (500,000 Bonus 40%(500,000 Bonus)) Bonus = 10% (500,000 Bonus -200,000 + 0.4 Bonus) Bonus = 10% (300,000 0.6 Bonus) Bonus = 30,000 0.06 Bonus 1.06 Bonus = 30,000 Bonus = $28,302 Tax = 40%(500,000 28,302)=$188,679 Net Income = $500,000 28,302-188,679 = $283,079...
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