Nanny Pay Gross-Up Calculator
Enter the net amount your employee takes home. We'll calculate the gross wages needed so all taxes are covered.
Nanny Pay Gross-Up Calculator
Enter the net amount your employee takes home. We'll calculate the gross wages needed so all taxes are covered.
Enter the amount your employee takes home each week, before any tax adjustments.
What does it mean to "gross up" nanny pay?
Grossing up means increasing your employee's wages so that after all taxes are withheld, their take-home pay equals the amount you agreed to pay. For example, if you promised $500/week take-home, the gross pay needs to be higher to cover Social Security, Medicare, and any applicable income taxes. Estimate standard payroll costs →
Why is the grossed-up amount higher than just adding taxes on top?
When an employer pays taxes on behalf of an employee, those tax payments are considered additional taxable income by the IRS. This creates a "tax on tax" effect: the taxes you pay become income, which generates more taxes. The gross-up formula mathematically solves this infinite loop so the employee's net pay comes out exactly right. Need to catch up on back taxes? →
How does gross-up affect the W-2 and Schedule H?
The grossed-up wages appear on the employee's W-2 in Box 1 (Wages), Box 3 (Social Security wages), and Box 5 (Medicare wages) — all three boxes show the same grossed-up amount. The employer reports all taxes, including the employee's share, on Schedule H. The employee has no additional tax liability because all withholding has already been paid. See how Nest Payroll works →