Grossing Up A Payment For those departments that pay awards or bonuses, and would like the individual to receive an exact amount of net pay, the factor as of 10/1/07 is .63. Therefore, if the 'net desired' is $50.00, divide by .63 = $79.37 for the gross required. This gross would be the amount charged to your short code. After the Federal tax of 25%, State tax of 4.35%, Social Security tax of 6.2%, and Medicare tax of 1.45% are deducted, the net will be $50.00. If this will be a cash payment, please make sure that you post the gross amount on the Form G or Special Payment Form, and include in the special instructions box or explanation area that you have grossed up the amount to realize a net of $xxx.xx, or $50.00 in this example. See SPG 501.04-1 for taxation information on Gifts, Prizes, and Awards. Return to the Payroll Home Page