English - English
Definition of gross-up in English English dictionary
- A process in which the employee is reimbursed additional dollars to cover the increased tax liability which results from receiving company provided relocation reimbursements This gross-up often also covers the tax-on-tax occurrence that arises due to the extra income that results from the gross-up itself
- Gross-up is a benefit many employers provide to assist the employee with the tax liability that will be associated with reimbursements made for relocation expenses Rather than issue the gross-up dollars to the employee, most employers elect to deposit the funds for the employee with the different tax authorities It is important to remember that gross-up does not guarantee an employee will not incur extra tax liability due to their reimbursements Much will depend on the specific company gross-up policy and personal tax filing issues Since gross-up is a benefit, it is also considered taxable income
- The process used to calculate taxes and resultant gross pay from a check for an exact net amount