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How to Gross Up Wages? Ohio

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  • How to Gross Up Wages? Ohio

    Can anyone let me know what the calculation is to gross up wages?

    Ex. Net amount $2000, YTD wages $68,000, no state tax applicable?

  • #2
    The simplest way is to just use a gross up calculator. The following website is free but requires registration.

    Past that OH is not my state, and I have no idea on OH-SIT. For the moment let's pretend there is no SIT (since that is what you said). Based on your YTD GW, FICA-SST is not yet capped. FICA-MT never has a cap. FIT does not have to use the Flat Tax method, but grossing up using a W-4 based method is complicated. So the normal answer (excluding OH which I do not know) looks something like this.

    FICA = 7.65%
    FIT = 28.%
    effective tax rate = 35.65%
    Net pay then must = 64.35%

    If we talk the $2K net pay and divide by 64.35%, we end up with a gross pay of $3,108. Alternatively, if we want to double check our work (and we should), taxes of 35.65% against $3,108 are $1,108, leaving a net pay of $2,000. This is pretty easy to spreadsheet a simple example. However, changes states, other deductions, withholding methods and this gets very complicated very quickly. Do this a lot, and the free on line payroll calculator starts looking very good. It is worthwhile for any payroll person to learn how to do this, but it gets old quickly.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)


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