There are a few situations when you need to process a one-time exact NET payment amount for an employee. The most common use involves award (AWD) payments or cell phone equipment reimbursement allowances * (ALW). If you “gross up” the payment, the department will be charged the additional amount to cover the applicable taxes. This type of payment must be processed using the eligible earn codes on the Additional Pay Edoc.

Edoc information:

• You should use an effective date from a previous pay period. You do not want the transaction to be selected on the current payroll voucher.
• Indicate the exact NET amount you want the employee to receive.
• In the notes section, indicate that this payment will be “grossed up” to include taxes.

Adjustment Voucher information:

• Gross up transactions must be processed in the off-cycle payroll or as on-line checks. They cannot be included in the regular on-cycle payroll.
• You will not be charged the off-cycle fee if the transaction is processed in the off-cycle payroll using normal direct bank procedures. You will be charged the on-line fee if you are requesting a paper check.
• Paper adjustment voucher: complete adjustment voucher and indicate GROSS UP in the comments section. In the amount field, indicate the exact NET amount the employee should receive.
• Electronic adjustment voucher: after you enter the additional pay earn code/sequence number and tab out of the field, a GROSS UP box will display. Click the box if you want the system to calculate the “grossed up” net amount. In the amount field, indicate the exact NET amount the employee should receive.

*Special Note: The gross-up process should not be used for reimbursement of recurring cell phone allowance. Those payments are established using an Additional Pay Edoc for allowance which are processed and paid in the regular on-cycle payroll. The department may increase the allowance amount to include estimated applicable taxes at their discretion. Further details concerning this policy can be found on the payroll web site: http://www.fms.indiana.edu/payroll/CellPhones.asp