Gross-Up Calculator

TopRoute's Gross-Up Calculator helps you calculate pre-tax earnings required to match desired net pay. Simplify complex payroll calculations.

This would mean a Gross-Up Calculator could be used to ascertain what pre-tax income a given after-tax income can bring, incorporating tax rates and allowances, in order to know what gross amount will generate the desired net pay to obtain.

Gross-up Calculator

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Net Pay*

Gross Pay YTD*

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Exempt from Federal*

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Exempt from FICA*

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Exempt from Medicare*

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Gross Pay

Federal Tax

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FICA Tax

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Net Pay

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Gross Income Calculator Information

Gross income calculator information

You don't need much info to calculate gross income. Along with the net pay you have in mind for this particular employee, you'll input the following information:

Your employee's federal tax filing status (married, single, married but withholding at a higher rate, or nonresident alien)
The number of allowances your employee lists on their W-4 tax form

You'll also need the same basic pay information you'd enter in any other type of payroll calculator, including these:

Payment date
Year-to-date pay
Pay frequency (for instance, biweekly, weekly, or monthly)

And don't forget to select your employee's state of residence from the calculator's drop-down menu. State income taxes vary across the country, so if you don't choose the right state, you won't calculate the right local tax withholding amount.

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Pro Tip: Updated 2020 W-4 Forms

Employees hired in 2020 need to submit a simplified W-4 form, which is notably different from previous versions. The key change is the removal of allowances. If your employee has submitted a 2020 W-4, select "Yes" on the calculator's "Use 2020 W-4" option, and be sure to include any details regarding their additional jobs, dependents, or other income sources as indicated on the form.

Frequently Asked Questions

Gross pay refers to the total amount that an employee earns before any deduction is made. This includes regular wages, overtime, bonuses, or other compensations before taxes and other deductions, such as health insurance premiums or retirement contributions, are subtracted. The leftover after deduction is called net pay.

Payroll taxes are those taxes that an employer deducts from an employee's earnings. These include federal and state income taxes, as well as FICA taxes, which cover Medicare and Social Security. There is also the FUTA tax, which is a federal tax for unemployment benefits. For both FICA and FUTA taxes, employers must match the contributions their employees make.

The federal tax on bonuses paid to employees in 2020 is flat at 22% of the bonus paid, along with the normal payroll taxes (such as Social Security and Medicare taxes).

A gross-up calculator helps determine how much compensation, including taxes, an employer should pay out so that an employee receives a specific net amount. It accounts for tax adjustments, ensuring that the take-home pay meets the expected amount.

Employers use a gross-up calculator to provide an employee with a specific net amount for bonuses or other non-regular payments. It ensures that the employee's final take-home pay is exactly what was promised, accounting for applicable tax deductions.

A gross-up calculator works by taking into account the employee's tax rate and calculating how much additional gross pay is needed to achieve the desired net pay. The calculation includes federal income taxes, state taxes, FICA, and sometimes other withholdings such as Medicare or Social Security contributions.

Gross-up calculators are typically used for one-time or infrequent payments like bonuses and prizes. They are less common for regular payroll since withholding on regular wages is calculated using standard tax rates and withholding allowances.

Yes, the grossed-up amount is subject to the same payroll taxes like Social Security and Medicare and is part of the employee's gross income.