About Ed McFarland Expertise Over 20 years of experience as a CFO, Controller and now Consultant to small businesses. Dealt with 401k, 403b, deferred comp plans, key man issues, disablity, business continuation plans, HSA plans and other benefit issues.
Experience Management experience in Financial Services, Manufacturing, Media, Logistics. Taught graduate and undergraduate business courses.
Question We have an employee who is supposed to have his car allowance grossed up. The net amount per semi monthly pay period is to be 346.94. He claims M & 1 and he lives in Ohio where he has a state tax. I used a gross up calculator to figure the amount to enter, but he's saying it's not right. Do I need to consider what tax bracket he's in, since the car allowance is added to his regular s/m pay? If possible, can you show me the correct calculations. Thanks so much for your help!!!!!!!!
Answer If you are doing it from total gross pay, it should be right.
If you are only considering the allowance, it may be off for the tax bracket.
What is he saying it should be? How sure is he? Just because it doesn't look right doesn't make it wrong.
