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    How to calculate the gross amount of a paycheck from a net amount paid

    Article ID: 1000811

    Overview

    When a paycheck, such as a bonus or commission, must have a specific net amount, you can gross up the paycheck. This article explains how to do that.

    This option is only available for Enhanced and Assisted Payroll customers.

    Assumptions

    You have an active Enhanced or Assisted Payroll subscription.

    Expected Outcome

    You will gross up the paycheck to reflect the net amount you require.

    Details

    To gross up a paycheck:

    While creating paychecks, on the Preview Paycheck window, enter a salary or bonus payroll item in the Earnings box with no rate. Using any other type of item does not work.

    Click here for an article with instructions to create paychecks.

    Under Earnings, remove any other payroll items listed.

    Under Other Payroll Items, enter any deductions applicable to this paycheck.

    In the Preview Paycheck window, select the Enter net/Calculate gross box at the bottom right.

    In the Check Amount field, enter the net amount (the actual amount you want the employee to receive).

    Press the Tab key on your computer keyboard. QuickBooks populates a gross amount.

    Click Save & Close.

    In the Review and Create Paychecks window, click Continue > Create Paychecks.

    If you must use an hourly, piece work or addition item as the earnings item, use the trial and error method to calculate the gross.

    1. While creating paychecks, on the Preview Paycheck window, go to the Earnings box and enter a gross amount that is higher than the desired net. Press the Tab key on your keyboard to calculate the net.
    2. Adjust the gross amount under Earnings until you get the desired net amount.

    2 comments

    Anonymous2/8/2013

    Thanks for the reply. I did find the answer (after a frustrating search). I had always used the second method and recently found out that it actually causes the taxes to be a little higher but was glad to find out that it was minimal. I already had my deductions set up so I can just go to the Net/Calculate and check that and it gives me what I want. Thanks again.

    Reply

    Jo Ann2/8/2013

    I am an Intuit employee and saw your comment.

    I am glad this article helped you, but was sorry to hear about the frustration you had with finding the article. I have updated the title of the article to "How to calculate the gross amount of a paycheck from a net amount paid" hoping that it will make it easier to find and use the instructions.

    Thank you for posting this comment.

    Comments can not be added at this time.

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