Federal Gross-Up CalculatorSelect a state
Use this federal gross pay calculator to gross up wages based on net pay. For example, if an employee receives $500 in take-home pay, this calculator can be used to calculate the gross amount that must be used when calculating payroll taxes. It determines the amount of gross wages before taxes and deductions that are withheld, given a specific take-home pay amount. See payroll calculation FAQs below.
Frequently Asked Questions
Are bonuses taxed differently than regular pay?
Yes. Bonuses are taxed more than regular pay because they are considered supplemental income. They are always federally taxed, no matter which tax bracket you’re in.
What is the percentage method for bonuses?
What is the aggregate method for bonuses?
Will my bonus be taxed even if I claim exempt in my W4?
Are bonuses taxed by states?
What are my withholding requirements?
What’s the difference between single and head of household?
What was updated in the Federal W4 in 2020?
In 2020, the IRS updated the Federal W4 form that eliminated withholding allowances. The redesigned Form W4 makes it easier for your withholding to match your tax liability. Here’s how to answer the new questions:
- Step 2: check the box if you have more than one job or you and your spouse both have jobs. This will increase withholding.
- Step 3: enter an amount for dependents.The old W4 used to ask for the number of dependents. The new W4 asks for a dollar amount. Here’s how to calculate it: If your total income will be $200k or less ($400k if married) multiply the number of children under 17 by $2,000 and other dependents by $500. Add up the total.
- Step 4a: extra income from outside of your job, such as dividends or interest, that usually don't have withholding taken out of them. By entering it here you will withhold for this extra income so you don't owe tax later when filing your tax return.
- Step 4b: any additional withholding you want taken out. Any other estimated tax to withhold can be entered here. The more is withheld, the bigger your refund may be and you’ll avoid owing penalties.
If your W4 on file is in the old format (2019 or older), toggle "Use new Form W-4" to change the questions back to the previous form. Employees are currently not required to update it. However if you do need to update it for any reason, you must now use the new Form W-4.
How is Federal Income Tax (FIT) calculated?
The more taxable income you have, the higher tax rate you are subject to. This calculation process can be complex, so PaycheckCity’s free calculators can do it for you!
The federal income tax is a tax on annual earnings for individuals, businesses, and other legal entities. All wages, salaries, cash gifts from employers, business income, tips, gambling income, bonuses, and unemployment benefits are subject to a federal income tax.
For each payroll, federal income tax is calculated based on the answers provided on the W-4 and year to date income, which is then referenced to the tax tables in IRS Publication 15-T. The current tax rates are 0%, 10%, 12%, 22%, 24%, 32%, 35%, or 37%. Again, the percentage chosen is based on the paycheck amount and your W4 answers.
State Gross-Up Calculators
Select your state from the list below to see its gross-up calculator.
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
- Washington DC
- Puerto Rico
- American Samoa
- Northern Mariana Islands
- US Virgin Islands