What is gross cheque
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Gross up usually refers to an employer reimbursing workers for the taxes paid on some portion of their income, usually from a one-time payment such as relocation expenses. In other words, if an employee is promised $5,000 for relocation expenses, the actual check might be issued for $6,500. This would leave the promised $5,000 after deducting the required taxes.
BREAKING DOWN 'Gross Up'
Grossing up can be one of those gifts that comes back to haunt the recipient. Depending on how a company calculates the gross up, an employee may still end up owing money at tax time. To ensure that there are no surprises for the employee, the employer should use a tax professional to account for all the employee's income and deductions for the entire year, not just the amount of the check being grossed
BREAKING DOWN 'Gross Up'
Grossing up can be one of those gifts that comes back to haunt the recipient. Depending on how a company calculates the gross up, an employee may still end up owing money at tax time. To ensure that there are no surprises for the employee, the employer should use a tax professional to account for all the employee's income and deductions for the entire year, not just the amount of the check being grossed
Answered by
2
Gross up usually refers to an employer
reimbursing workers for the taxes paid on some portion of their income,
usually from a one-time payment such as relocation expenses. In other
words, if an employee is promised $5,000 for relocation expenses, the
actual check might be issued for $6,500.
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