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An employee has YTD wages in the amount of $250,000.00 and receives a $1,753.00 bonus payment. Using the optional flat rate method, calculate the federal income tax withholding from the bonus payment.
Correct Answer: A
Comprehensive and Detailed Explanation: Under IRS guidelines, supplemental wages such as bonuses are subject to a flat federal tax rate of 22% if paid separately. Federal Tax Calculation: $1,753.00 × 22% = $385.66 Rounded to the nearest cent, the closest answer is $385.00. Thus, the correct answer is A. $385.00. Reference: IRS Publication 15-T - Federal Income Tax Withholding Methods Payroll.org - Supplemental Wage Withholding Rules