A gross-up is a payroll calculation used to determine how much an employer needs to pay in gross wages so that an employee receives a specific net amount after taxes and deductions are withheld. Gross-ups are most commonly used for one-off payments like bonuses, severance, or reimbursements where the goal is for the employee to take home a specific dollar figure.
There is no employer control in BerniePortal to calculate or submit a gross-up. To request one, contact Employer Success.
When to Use a Gross-Up
Gross-ups are typically used when you want to guarantee an employee receives an exact net amount. Common examples include:
- Bonuses — you want an employee to receive a specific net bonus, so you gross it up to cover taxes
- Severance payments — ensuring a departing employee receives a specific final amount
- Reimbursements or one-off payments where the net figure matters most
Gross-ups are less common for regular wages, though the same calculation can apply.
How Gross-Ups Work
Instead of calculating taxes and withholdings from a set gross amount (the standard approach), a gross-up works backward from a desired net amount. The calculation determines the higher gross wage needed so that after applicable taxes and deductions are withheld, the employee's take-home pay matches your target.
For example, if you want an employee to receive a $500 net bonus, the gross amount required will be higher than $500 to account for federal withholding, FICA, and any state or local taxes.
When requesting a gross-up, provide:
- The employee's name and ID
- The desired net amount (what the employee should take home)
- The earning code the payment should use (for example, bonus, commission, or regular earnings)
- Whether the payment should be a manual check issued outside of regular payroll (with taxes processed on a following payroll), or a live payment included in the next scheduled payroll run
Getting Started
Email help@bernardhealth.com with the details above. Employer Success will calculate the appropriate gross amount, confirm the details with you, and process the payment accordingly.
Disclaimer: This article provides general information about payroll and is not intended as legal, tax, or financial advice. For guidance specific to your business or individual employees, consult a CPA, tax advisor, or attorney.