For the next few pages, we are going to take you through the process of calculating your Gross Up. These are 100% estimates and should merely be used as an estimation as to what your paycheck total will need to be to get the employee to a desired Net payment. By pressing the button below, you are agreeing to Workforce 2080's Privacy Policy as well as Workforce 2080's Terms Of Use.
Last Updated 3/21/2023 @ 7:33 PM CDT
This Estimator was developed with the idea of using 22% federal taxes, the states with flat or zero-based taxes, plus the social security and medicare taxes. We did not develop this specific calculator to account for those employees who made over $1,000,000.00 in wages for the year (I.E. they would be charged 37% federal taxes on supplemental wages).
What dollar amount do you wish the employee to go home with after taxes (I.E. Net Wages)?
Have you earned $200,000 or more this year?
This page was last updated on 3/21/2023 @ 7:33 PM CDT
Workforce 2080 assumes all bonuses and supplemental wages will be taxed at 22% Federal Income Taxes per the IRS Guidance. By pressing yes, you agree to 22% Federal Income Tax Withholding. Pressing *no* will mean you do not want to pull Federal Income Taxes (0%).
Workforce 2080 only has states which have non-withholding as well as those which have flat rates for supplemental wages below. The Gross Up Estimator does not support regular state tax withholding. We apologize for any inconvenience!
The state you have chosen does not have any state taxes. This means the state taxes will be zero percent (0%) during this calculation.
According to the Alabama Employer Tax Tables and Instructions document: Employers may withhold state income tax from bonuses and supplemental wage payments at the rate of 5%. This verbiage exists within their most recent publication which can be found by Clicking Here and looking on Page 3.
According to the California Employer Tax Tables and Instructions document: Employers may withhold state income tax from bonuses and stock options at the rate of 10.23%. This verbiage exists within their most recent publication which can be found by Clicking Here and looking on Page 15 under, "How to Withhold PIT on Supplemental Wages."
According to the Colorado Employer website, there is a flat tax rate of 4.40%. This verbiage exists within their most recent website publication which can be found by CLICKING HERE.
According to the Pennsylvania Employer Tax Withholding Documentation Employers are to withhold the 3.07% tax from each paycheck issued. This is stated on pages 9 and 12. Pennsylvania states the employer must determine the tax to withhold on supplemental income. Workforce 2080 assumes the tax rate for this supplemental income will be 3.075. You can find this documentation for Pennsylvania by Clicking Here.
According to the New York Employer Tax Withholding Documentation (NYS-50-T-NYS(1/22) Employers are to withhold the 11.70% tax from supplemental wages paycheck issued. This is stated on page 3. New York states the employer must determine the tax to withhold on supplemental income. Workforce 2080 assumes the tax rate for this supplemental income will be 11.70%. You can find this documentation for New York by Clicking Here.
According to the Georgia Employer Tax Tables and Instructions document: Employers may withhold state income tax from bonuses and supplemental wage payments at a percentage based on the employees annual income. Those percentages range from 2% - 5.75%. This verbiage exists within their most recent publication which can be found by Clicking Here and looking on Page 12. If the employees wages are under 8K; their bonuses can have a state withholding rate of 2%; if between 8K and 10K, withhold at a rate of 3%; if from 10K and 12K, withhold at a rate of 4%; if between 12K and 15K, withhold at a rate of 5%; if over 15K, withhold at a rate of 5.75%.
Select which annual income level you fall into below:
According to the Utah Employer Tax Tables and Instructions document: Employers may withhold state income tax from bonuses and supplemental wage payments at a percentage based on the employees annual income. The percentage is 4.85%. This verbiage exists within their most recent publication which can be found by CLICKING HERE.
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This page was last updated on 3/21/2022 @ 7:35 PM CDT.
The total taxation used for this calculation will be:
The Total Gross Up Payment will be:
The Total Taxes which will be withheld from the Gross Up Payment will be:
The Total Net Payment will be:
This Gross Up Estimator can be used to calculate the gross up of a bonus which includes states with no tax withholding, or those states which have a flat-rate percentage tax on supplemental wages. This gross up estimator can also be used to calculate FICA only taxes if you wish to give the employee more wages up front and have them catch up on their federal and state taxes when they go file their taxes during their tax filing.
Last Updated on 5/18/2024 @ 12:00 PM CDT