Gross-Up

What is Gross-Up?

Gross-up is extra cash an employer gives a worker to cover any higher income taxes (Social Security, Medicare, etc.) that the worker would owe to the IRS after receiving a company-provided cash benefit, such as moving costs. It’s optional to employ gross-up, typically done for one-time payments. It is occasionally utilized to reach a specified annual net pay, though. When this occurs, the salary is restated as net salary rather than gross salary.