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Gross-Up Calculator
Required Gross Pay
$0.00
To net: $0.00
💰 Gross-Up Cost (tax burden)$0
Federal Income Tax$0
FICA (SS + Medicare)$0
State Income Tax$0
💚 Net Amount$0
Gross-up percentage: 0% · Effective tax rate: 0%
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What Is a Gross-Up?
A gross-up determines the gross pay amount needed to deliver a specific net (after-tax) amount. Employers commonly use gross-ups for relocation payments, sign-on bonuses, and executive compensation to ensure the employee receives the full intended amount.
How It Works
The basic formula is: Gross = Net / (1 - Total Tax Rate). However, federal progressive brackets make this complex, so our calculator uses iterative solving to find the exact gross amount needed.
For example, to gross up a $5,000 net payment for a 22% federal + 5% state + 7.65% FICA employee: Gross = $5,000 / (1 - 0.3465) = $7,651. The employer pays $7,651 gross, and the employee nets exactly $5,000.
💡 Pro tip: When negotiating a relocation package, ask if the employer will gross up your relocation bonus. Without a gross-up, a $15,000 relocation payment only nets about $10,500.