Gross up/Tax Assistance
Gross up or tax assistance is a good thing! The are reducing or possibly eliminating the amount of taxes coming out of your pocket. Your employer paid relocation benefits are taxable income to you – depending on your companies policy the tax assistance or gross up provided will either reduce or eliminate the amount of tax you’ll be required to pay. Both the value of the original benefits and the tax assistance paid by your employer will be added to your wages. This assitance will be paid directly to the appropriate tax authorities by your companies payroll department – you will not be recieving this payment directly. You may also notice an increase in the amount of taxes shown as being witheld from your wages. The tax deductions for Federal, State, and FICA tax will be increased by the amount of the gross up.