Enter the desired final amount and the tax rate into the calculator to determine the gross up paycheck amount.

- EBT (Earnings Before Tax) Calculator
- AMT (Alternative Minimum Tax) Calculator
- Depreciation Tax Shield Calculator
- Reverse Sales Tax Calculator

## Gross Up Paycheck Formula

The following equation is used to calculate the Gross Up Paycheck.

GUP = FPA/(1-TR/100)

- Where GUP is the gross up paycheck amount ($)
- FPA is the final payment amount after taxes are taken out ($)
- TR is the tax rate (%)

To calculate the gross up paycheck amount, divide the desired final payment the person is to receive by the result of 1 minus the tax rate.

## What is a Gross Up Paycheck?

Definition:

A gross-up paycheck is a method of calculating a paycheck amount that a business wants to give a person for them to receive a certain amount after taxes are taken into account.

For example, if a company wants a person to receive $4,000.00 after taxes, they need to pay them more than $4,000.00, which is the gross-up paycheck amount.

## How to Calculate Gross Up Paycheck?

Example Problem:

The following example outlines the steps and information needed to calculate Gross Up Paycheck.

First, determine the total amount you want the person to receive. In this example, the person is to receive $6,000.00.

Next, determine the tax rate. The tax rate for this individual is 20%.

Finally, calculate the gross up paycheck amount using the formula above:

GUP = FPA/(1-TR/100)

GUP = 6000/(1-20/100)

GUP = $7,500.00