How this number is made
Employers gross up a bonus or a relocation payment when they want the employee to keep a set amount. The gross is the net divided by one minus the tax rate. A flat rate is a shortcut. Real withholding uses brackets and can differ.
- The tax rate should include every tax that will be withheld on that payment.
- If the rate is 30%, you divide by 0.70, not by 1.30.
Formula
Gross = net ÷ (1 − tax rate).
Worked example
With the figures already in the form, gross to pay is $7,142.86.
Questions
Why is this not the paycheck page?
The paycheck page uses 2026 brackets. A gross-up in payroll is often a flat supplemental rate. Type that rate.
What if the rate is 100%?
There is no gross that leaves a net. The page will not divide by zero.