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Gross Up wages not include additional tax amounts

Former Member
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Hello,

So my payroll department is indicating that Gross Up wage types should NOT include any additional tax amounts listed in the W4, IT0210. For example if an employee requests an additional $50 withheld in tax from their check, this should not be included in the Grossed Up amount. The reasoning is this is a potential for abuse u2013 if the employee knows theyu2019re receiving a gross up, they could increase their additional tax temporarily since the employer would fund the gross up.

Has anyone run into this issue? I imagine I could reduce /401 via a calculation rule after the BSI calculation, but thatu2019s a pretty complex solution for this if so.

Jay Crowley

Accepted Solutions (1)

Accepted Solutions (1)

Pazahanick_Jarr
Active Contributor
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Hi Jay

Did you try making this payment on an off cycle bonus run as that could be a potential option.

Happy Holidays.

Jarret

Former Member
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Hi folks, this was an issue I was facing almost three years ago. At the time I think we applied the workaround that Jarret suggests. Oddly enough I tried this scenario today (both off-cycle and regular, supplemental and regular tax gross-up) and the additional amount was NOT included. So this could be something that was fixed in BSI 10.0, or via an HR support pack that we applied. Either way the situation was rare enough for us that we didn't pursue a resolution further.

Thanks for the interest. Ify - I would suggest trying several tax scenarios (off-cycles, supplemental/regular tax calc.) to make certain the additional amount is being included. Are you on BSI 9.0 or 10.0?

@Jarret - thanks for the response. Merry Christmas. Hope to see you at HR 2015 in Vegas.


Jay

Answers (3)

Answers (3)

omosindi
Explorer
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Hello Jay,

   Did you resolve the request from your client?

If so, can you please let me know the approach you used?

I have the same scenario, and don't know how to go about it.

thanks

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I don't think additional w/hold is taken into consideration when gross-up is calculated.

former_member235056
Active Contributor
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Hi,

I don't think it is potential abuse as employee has gross up amount and can report same as additional tax withheld and that is why they are allowed to input amount on W-4.

If you want to control such thing then you need to inform employees through communication to prevent same.

Thanks,

Ameet