Learn how to calculate gross wages.

Grossing up a paycheck means to calculate the gross wages obtained from a specified net pay amount. We explain how to calculate gross wages.

To successfully calculate the gross from the net, you must know:

• Net amount
• Taxes to be withheld

The basic formula to gross up an amount is:
net amount + flat tax amounts / (100% - total percent of taxes) = Gross

An example

Assume the desired net pay amount is \$200, and you want to withhold social security, medicare and \$100 for federal income tax (FIT).

1. Total the tax percentages.
Social Security 6.2% + Medicare 1.45% = 7.65%
2. Subtract the total from 100%
100-7.65 = 92.35
3. Convert that number to a percentage by moving the decimal two positions to the left
0.9235
4. Add \$100 from FIT to the net
\$100 + \$200 = \$300
5. Divide the new net amount by the amount in step
300 / .9235 = 324.85
6. The gross amount to be used is \$324.85.
The net amount will be \$200 after withholding social security, Medicare, and \$100 for FIT.