Gross-Up Definition

Reimbursement offered to employees for the taxes paid by them on a certain portion of their income is called gross-up.

Gross-Up Extended Definition
A payment with inbuilt tax compensation made to a worker is called gross-up. In short, it means payment of the complete amount without any kind of deductions. For instance, if a worker is to be given $5,000 as a relocation expense, the company may issue a check worth $6,500. This will ensure that the worker receives $5,000 after the tax deduction.

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Last Updated By

Jenna Hutkowski | Apr 27, 2023