Definitions for "Gross-Up"
Usually applies to a full service office lease where if the building is less than 90% or 95% occupied, the expenses are still calculated for the tenants prorate share of operating expenses.
An calculation that employers can use to figure the taxable gross wages when the employer chooses to pay the employee's share of tax.
Gross-up is a benefit many employers provide to assist the employee with the tax liability that will be associated with reimbursements made for relocation expenses. Rather than issue the gross-up dollars to the employee, most employers elect to deposit the funds for the employee with the different tax authorities. It is important to remember that gross-up does not guarantee an employee will not incur extra tax liability due to their reimbursements. Much will depend on the specific company gross-up policy and personal tax filing issues. Since gross-up is a benefit, it is also considered taxable income.
see markup charge and production add-on.