Gross-up is the act of boosting an employee's salary to reflect any additional taxes or fees related with a specific perk or payment. It is frequently utilized when an employer delivers a taxable benefit to an employee in order to ensure that the employee receives the full value of the benefit after taxes.
Example
An employer pays a relocation allowance to an employee and chooses to gross up the amount to offset the taxes that the employee would have to pay on the relocation help, ensuring that the employee receives the entire intended amount without any tax breaks
