Gross-Up Calculator

Gross amount = Desired net amount ÷ (1 − combined tax rate). If you want an employee to net $1,000 after a combined 34.65% tax rate, the gross payment needs to be $1,000 ÷ (1 − 0.3465) = $1,530.22.

Common cases: relocation reimbursements, one-time bonuses where the employer wants the employee to receive a specific net amount, severance payments, or covering a tax liability created by a fringe benefit — the employer effectively pays the employee's tax on that item so it doesn't reduce their take-home amount.

For federal purposes, supplemental wages like bonuses are commonly withheld at a flat 22% federal rate (37% above $1 million in supplemental wages in a year). Add your state's supplemental withholding rate and 7.65% FICA (Social Security + Medicare) if the payment is subject to it, for a combined rate.

In practice, no — because the gross-up formula already accounts for tax on the full grossed-up amount, not just the original net figure. The formula divides by (1 − rate) rather than just adding a flat percentage, which correctly taxes the tax itself in a single step.