Payroll Gross-Up Calculator
Free 2026 payroll gross-up calculator. Enter the net an employee should take home from a bonus or relocation and get the gross to run, plus the tax withholding.
Payroll Gross-Up Calculator
Desired pay
This state has no single flat supplemental rate. The flat result is an estimate; your state may require the aggregate method.
Regular wages use bracket withholding. Enter your employee effective rate in the federal field below; the flat result is an estimate.
Tax rates
Advanced: year-to-date wages
YTD figures apply the $184,500 Social Security cap and the 0.9% Additional Medicare surtax over $200,000 to the right portion of this payment.
The gross-up amount is the extra cost above the net you promised. Total employer outlay adds the employer FICA match (employer pays no 0.9% surtax). FUTA and SUTA are not included here.
What a payroll gross-up is (and when you need one)
A payroll gross-up runs the usual paycheck math in reverse. Instead of starting with a gross figure and subtracting tax, you start with the take-home amount you promised and work backward to the gross your payroll run has to process so the worker nets exactly that. Those extra dollars that cover the withholding are the gross-up.
Employers gross up one-time payments all the time: holiday and signing bonuses, relocation and moving reimbursements, severance, awards. Usually there is a promise behind it, like a $5,000 net signing bonus or a relocation that costs the employee nothing once tax is covered. One thing to watch: the gross-up only covers the employee withholding. You still owe your own FICA match (plus FUTA and SUTA), which the calculator rolls into the total employer outlay.
How to gross up payroll: the formula with a worked example
Most one-time payments count as supplemental wages, so the federal flat rate turns the math into a clean division instead of an iterative bracket solve:
Gross = Net divided by (1 minus total tax rate)
The total tax rate stacks the federal supplemental rate (22%), the state supplemental rate, any local rate, plus FICA at 6.2% Social Security and 1.45% Medicare. Take a $3,000 net bonus in Florida (no state income tax):
- Total rate: 0.22 + 0.062 + 0.0145 = 0.3865
- Gross: 3,000 divided by (1 minus 0.3865) = 3,000 divided by 0.6135 = $4,889.98
- Check: 4,889.98 times 0.3865 = $1,889.98 withheld; 4,889.98 minus 1,889.98 = $3,000 net
The net-check line on this page reconciles to the net you entered within a cent, so you can confirm the gross is right before you run it.
2026 rates that drive the calculation
- Federal supplemental: 22% flat on supplemental wages, rising to 37% on cumulative supplemental wages over $1,000,000 in the calendar year (IRS Publication 15).
- Social Security: 6.2% up to the 2026 wage base of $184,500. Once an employee year-to-date wages cross that base, the 6.2% stops, which lowers the required gross. Enter YTD Social Security wages under Advanced and the calculator re-solves the gross with the cap.
- Medicare: 1.45% on all wages with no cap, plus the 0.9% Additional Medicare surtax on wages over $200,000 (employee-only; the employer does not match it).
- State supplemental: rates are pre-filled per state. Some states have no flat supplemental rate and may require the aggregate method, in which case the flat result is an estimate.
From one bonus to a full payroll run
This page grosses up one payment at a time. When the gross-up scales to a team, the Payroll Calculator app runs full multi-employee payroll with per-employee independence, all 50 states plus DC, decimal-precise FICA, and employer SUTA and FUTA. To work the bonus in the forward direction, see the bonus tax calculator; to size the employer side, use the employer cost calculator or the SUTA and FUTA employer tax calculator.
Frequently Asked Questions
Common questions about payroll gross-up calculator
What does it mean to gross up a paycheck?
Grossing up means bumping the gross payment up so that, once taxes come out, the employee lands on the exact amount you meant them to keep. You start from the take-home figure you promised and work backward to the gross the payroll run needs.
What is the gross-up formula?
Gross equals Net divided by (1 minus the total tax rate), where the total tax rate sums federal, state, local, Social Security (6.2%), and Medicare (1.45%). Once the Social Security wage base cap kicks in, the 6.2% gets swapped for a fixed dollar amount and the gross is re-solved.
What tax rate is used for a bonus gross-up?
The IRS flat supplemental rate of 22% for federal (37% on supplemental wages over $1 million per year), plus your state supplemental rate and FICA. If you want to go the other way (gross to net) on a bonus, use the bonus tax calculator.
Do I have to gross up a bonus?
No, it is optional. You gross up when you have promised a specific take-home amount, say a $5,000 net signing bonus or a relocation reimbursement, and you want the employee to walk away with that exact figure after tax.
How are relocation and moving payments grossed up?
They count as supplemental wages, so the same flat-rate gross-up applies. A lot of employers gross up relocation so the move costs the employee nothing out of pocket once withholding is covered.
Does grossing up cover the employer payroll taxes too?
No. The gross-up only covers the employee withholding. You still owe your own FICA match (plus FUTA and SUTA), which this page lumps into the total employer outlay. To size up the employer side on its own, use the employer cost calculator.
What is the 2026 Social Security wage base and why does it matter for gross-ups?
It is $184,500 for 2026. Once an employee year-to-date wages pass it, the 6.2% Social Security tax stops, which brings the required gross down. Enter your YTD Social Security wages under Advanced so the calculator re-solves the gross with the cap applied.
Flat method vs aggregate method, which should I use?
The flat 22% method (used here) is the simplest, and it is allowed when supplemental wages are paid separately from regular pay. The aggregate method bundles the payment in with regular wages and withholds at bracket rates. A few states require the aggregate method, so treat the flat result as an estimate where noted.