It is not uncommon for payroll professionals to need to add amounts to gross taxable pay to cover taxes when the employer wants to provide a particular amount net of taxes. Instead of doing this manually, the gross-up calculator figures in federal, any state and social security taxes and provides what the gross amount should be when given the desired net.
Bonus calculator (percentage)
For many bonus payments, employers have an option to apply a federal flat rate of tax to the bonus amount instead of applying the additional amounts to regular payments following the Federal Form W-4. There are states that also have a flat tax rate option as well. This calculator will identify the taxes to withhold and the net amount of pay for a particular bonus using this method.
Bonus calculator (aggregate method)
In instances where the aggregate method of withholding is applied to bonus payments, this calculator uses the individual’s last paycheck amount to apply the correct withholding rates to the special wage payment.