Paying People

Payroll Gross-Up Calculator

The IRS requires withholding on most payments, but your department may have promised an individual a specific payment amount regardless of taxes. In this case, your department must request that University Payroll & Benefits (UPB) "gross-up" the payment.

Please note that your department will incur charges for the full amount submitted to UPB.

Recipient Amount

Calculate the amount your department will pay on a gross-up payment (recipient amount plus taxes).

Recipient amount: $

Employee/Student Employee Award Options

If the employee is a student, the award tax rate will only be used if the award is related to the student's employment. Student awards not related to employment should be processed through Accounts Payable.

Employees Subject to Medicare*
Employee awards are taxed at 28.4% if the employee is subject to Medicare tax.

Employees NOT Subject to Medicare*
Employee awards are taxed at 26.95% if the employee is not subject to Medicare tax.

Payments to Foreign Nationals

Scholarships and fellowships to foreign national nonresident aliens for tax purposes (NR) holding F, J, M, or Q visas are taxed at 14%. If the foreign national holds a different type of visa, the scholarship or fellowship will be taxed as "All Other Foreign National NR Payments" at 30%. Scholarships and fellowships to U.S. citizens, U.S. permanent residents, and foreign national resident aliens for tax purposes (RA) are not taxed by the university.

Foreign National NR Scholarships or Fellowships to F, J, M, or Q Visa Holders:
Scholarships or fellowships to F, J, M, or Q visa holders are taxed at 14%.

All Other Foreign National NR Payments:
(Including student awards) are taxed at 30%.

Other Employee Payments

Federal, State and Medicare*
Taxed at 28.4% if the employee is subject to Medicare tax.

Federal and State
Taxed at 26.95% if the employee is not subject to Medicare tax.

Federal, State, SURS* and Medicare*

Taxed at 36.4%

Federal, State, Social Security and Medicare*

Taxed at 34.6%

Your department will be charged:

*Medicare and SURS are not applicable to all gross-up payment situations. Contact UPB for clarification.

If you are unsure if the employee is subject to Medicare, contact UPB.
An additional 0.9% Medicare tax will apply for all wages in excess of $200,000 in a calendar year.
SURS is calculated at 9% for firefighters and police.

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