1. Employer-Paid Taxes
Gross Up Calculations

2. Gross Up Formula: Basic
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3. Basic Calculation
The employee is to receive a year-end bonus of $7, The employer has agreed to pay all taxes on the bonus. The employee has been paid $75,000 year-to-date and the state supplemental wage withholding rate is 4.5%. Calculate the gross pay for this year-end bonus payment.
25% (FITW) + 4.5% (SITW) + 6.2% (SS) % (MEDI) = 37.15%
100% % = 62.85%
$7,000 / = $11,
Answer: $11,137.63
Proof: Taxes: $2, $ $ $ = $4,137.63
$11, $4, = $7,000

4. Basic Calculation
The employee is to receive a year-end bonus of $6, The employer has agreed to pay all taxes on the bonus. The employee has been paid $90,000 year-to-date and the employee works in a state with no supplemental wage withholding rate. Calculate the gross pay for this year-end bonus payment.
Answer: $8,908.69
25% (FITW) + 6.2% (SS) % (MEDI) = 32.65%
100% % = 67.35%
$6,000 / = $8,
Proof: Taxes: $2, $ $ = $2,908.69
$8, $2, = $6,000

5. Gross Up Formula: Social Security Limit
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6. Social Security Limit Calculation
The employee is to receive a year-end bonus of $10, The employer has agreed to pay all taxes on the bonus. The employee has been paid $124,200 year-to-date and the employee works in a state with no supplemental wage withholding rate. Calculate the gross pay for this year-end bonus payment.
($127,200 - $124,200) x 6.2% = $186
25% (FITW) % (MEDI) = 26.45%
100% % = 73.55%
($10,000 + $186) / = $13,
Answer: $13,849.08
Proof: Taxes: $3, $186 + $ = $3,849.08
$13, $3, = $10,000

7. Social Security Limit Calculation
The employee is to receive a year-end bonus of $6, The employer has agreed to pay all taxes on the bonus. The employee has been paid $126,700 year-to-date and the employee works in a state with no supplemental wage withholding rate. Calculate the gross pay for this year-end bonus payment.
Answer: $8,199.86
($127,200 - $126,700) x 6.2% = $31
25% (FITW) % (MEDI) = 26.45%
100% % = 73.55%
($6,000 + $31) / = $8,
Proof: Taxes: $2, $31 + $ = $2,199.86
$8, $2, = $6,000

8. Gross Up Formula: Medicare Limit
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9. Medicare Limit Calculation
The employee is to receive a year-end bonus of $30, The employer has agreed to pay all taxes on the bonus. The employee has been paid $175,000 year-to-date and the employee works in a state with no supplemental wage withholding rate. Calculate the gross pay for this year-end bonus payment.
($200,000 - $175,000) x .9% = $225
25% (FITW) % (MEDI) + .9% (SURTAX) = 27.35%
100% % = 72.65%
($30,000 - $225) / = $40,
Answer: $40,984.17
Proof: Taxes: $10, $ $143.86* = $10,984.17
$40, $10, = $30, *($175,000 + $40,984.17)-$200,000 x .9% = $143.86

10. Medicare Limit Calculation
The employee is to receive a year-end bonus of $25, The employer has agreed to pay all taxes on the bonus. The employee has been paid $185,000 year-to-date and the employee works in a state with no supplemental wage withholding rate. Calculate the gross pay for this year-end bonus payment.
Answer: $34,225.74
($200,000 - $185,000) x .9% = $135
25% (FITW) % (MEDI) + .9% (SURTAX) = 27.35%
100% % = 72.65%
($25,000 - $135) / = $34,
Proof: Taxes: $8, $ $173.03* = $9,225.74
$34, $9, = $25,000 *($185,000 + $34,225.74)-$200,000 x .9% = $173.03