When you provide NET amounts, we need to back into the Gross that needs to be posted.
Example: You want to pay the employee $300.00 net with FICA taxes only. We Gross up the check and post a Bonus of $324.85, withhold the FICA taxes of $24.85 and pay the employee $300.00. Please remember that the Employer also needs to match the FICA taxes.
For a cheat sheet of Gross up calculations please click here.
Seek direction from your accountant or IRS Publication 15 (Circular E) if uncertain as to how taxation should be handled.
Please be advised that bonus payrolls that exceed $100,000 may require funding by WIRE TRANSFER. Instructions will be provided.