How to Figure Out Gross Salary With Net Pay

Figuring gross from net means working backwards mathematically.

Calculating gross salary from the net figure is called "grossing up." That's because net pay has already had taxes and other deductions removed, leaving what is also known as "take-home" pay. Grossing up is useful for discovering pay before taxes and deductions.

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Gross salary amount
Federal and state withholding rates
Medicare and FICA withholding rates
Local tax rate
Additional withholding amounts

Instructions

Calculating for Payroll
- 1
  
  Find out the Federal and state withholding rate in your area, recommends Gunnison & Johannes, a certified public accounting corporation in Oregon. Also find out the Medicare withholding and the rate of FICO, which stands for "Federal Insurance Contributions Act" and refers to the amount of money an employer contributes to his employees' social security and retirement. See if a local tax rate applies to your area, as well.
- 2
  
  Check for additional withholding. This can be something an employee elected on his own, such as an amount deducted each week for savings or to offset a loan from the company.
- 3
  
  Divide the net salary amount by the Federal, state, and local tax rates, and the FICA and Medicare withholding to discover the gross salary. For example, if the net salary is $100 and your state's withholding amount is 8 percent, then divide 100 by 8, which results in $12.43. Continue to do this for each withholding amount, then add the amounts to the net income.
- 4
  
  Add the extra withholding amount to your net income. Since additional withholding amounts are usually set amounts --- for instance, $20 each week to a savings account --- this can be added in one lump rather than as a percentage.