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The Empuls Glosari

Terma Glosari Pengurusan Sumber Manusia dan Manfaat Pekerja

Lawati Glosari Sumber Manusia

Kasar Ke Atas

Gross up is a financial and accounting term that describes increasing a net amount to arrive at a final amount. The concept of gross up is usually encountered in different financial scenarios, like employee compensation, dividends, and various types of payments and reimbursements.

What is the meaning of gross up?

Gross up is a process of raising a net amount to reach its gross equivalent. It includes adding the amount of taxes or other deductions to a net figure to calculate the total amount before those deductions were made. The primary purpose of grossing up is to ensure that a recipient receives a particular amount after taxes or deductions have been taken.

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What is the gross-up rate?

The gross-up rate, also referred to as the gross-up factor, is a numerical multiplier used to calculate the gross amount from a given net amount after deductions. It is basically used in tax and financial calculations to identify the total amount before taxes or miscellaneous deductions.

When an employer offers gross-up to employees?

Employers may offer a gross-up in various situations, such as:

  1. Relocation expenses
  2. Bonus and incentives
  3. Equity awards
  4. Severance package
  1. Relocation expenses: When an employee is asked to relocate for work, they may provide financial assistance to cover the cost of moving, maybe traveling, housing and shipping goods expenses. Employees get reimbursed for the tax incurred; the employers may gross up the amount of relocation.
  2. Bonus and incentives: Employers may also provide incentives or bonuses on their performances; rather than giving a gross bonus, they may gross up the bonus as a desired amount.
  3. Equity awards: In some scenarios, employers grant equity-based compensation, like stock units or stock options, to employees. When equity awards vest or become exercisable, employees may face tax implications to help employees cover the taxes owed on the equity awards.
  4. Severance package: When the employee is being terminated, they might be offered a severance package to assist the employee during this termination and cover taxes; the employer may gross up the amount.

How to calculate gross up?

To calculate the gross-up amount, cater these steps:

  1. Identify the net amount
  2. Determine the gross-up rate
  3. Calculate the gross amount
  4. Check the gross amount

1. Identify the net amount: By identifying the net amount that the receipt needs to receive after taxes or deductions. This is the amount you want to end up after grossing up.

2. Determine the gross-up rate: The gross-up rate is the tax or dedication that was taken to arrive at the net amount.

(Total gross amount - Net amount) / net amount = Gross up rate

3. Calculate the gross amount: To determine the gross amount, divide the net amount by the complement of the gross-up rate.

Net amount / (1 - Gross up rate) = Gross amount

4. Check the gross amount: Ensure that the calculated gross amount, after-tax or deductions, will result in the desired net amount.

What is an example of gross up?

Suppose an employee is eligible for performance bonuses of $6500, and employers ensure that employees receive the full amount of $6500 after tax deduction and consider the employee tax rate as 20%.

Calculating the gross-up rate

Gross up rate = (Total gross amount / Net Amount) - 1
Total gross amount = Net amount / (1- Gross up rate)
Gross up rate = Net amount / (1- Gross up rate)

                      = ($6500 / $6500) - 1

Gross up rate = 0

Since the gross-up rate is 0, there are no tax deductions applied to the bonus amount, and the employee will receive the full $6500 without grossing up.

Tinjauan nadi pekerja:

Ini ialah tinjauan ringkas yang boleh dihantar dengan kerap untuk menyemak pendapat pekerja anda tentang sesuatu isu dengan cepat. Tinjauan ini terdiri daripada kurang soalan (tidak lebih daripada 10) untuk mendapatkan maklumat dengan cepat. Ini boleh ditadbir secara berkala (bulanan / mingguan / suku tahunan).

Mesyuarat satu lawan satu:

Mengadakan mesyuarat berkala selama sejam untuk sembang tidak formal dengan setiap ahli pasukan adalah cara terbaik untuk memahami apa yang berlaku dengan mereka. Oleh kerana ia adalah perbualan yang selamat dan peribadi, ia membantu anda mendapatkan butiran yang lebih baik mengenai sesuatu isu.

eNPS:

eNPS (pekerja skor Net Promoter) adalah salah satu cara yang paling mudah tetapi berkesan untuk menilai pendapat pekerja anda terhadap syarikat anda. Ia termasuk satu soalan menarik yang mengukur kesetiaan. Contoh soalan eNPS termasuk: Bagaimana kemungkinan anda mengesyorkan syarikat kami kepada orang lain? Pekerja bertindak balas terhadap kaji selidik eNPS pada skala 1-10, di mana 10 menandakan mereka 'berkemungkinan besar' untuk mengesyorkan syarikat dan 1 menandakan mereka 'sangat tidak mungkin' untuk mengesyorkannya.

Berdasarkan respons, pekerja boleh diletakkan dalam tiga kategori berbeza:

  • Promoter
    Pekerja yang telah memberi respons positif atau bersetuju.
  • Pengkritik
    Pekerja yang telah bertindak balas secara negatif atau tidak bersetuju.
  • Pasif
    Pekerja yang kekal neutral dengan jawapan mereka.

Pautan Pantas

Penyelesaian Penglibatan Pekerja
Glosari

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