how do you calculate a gross pay amount?

Question

If you are in a 28% tax bracket, and you want a check to equal (net) $10,000, what formula do you use?

Answer 1

 

Answer:  find the gross paycheck amount (before 28% tax deductions) : divide $10,000/.72

gross (before tax deduction) = $13,889

 

 

Answer 2

Assuming the only difference between your gross and net amounts is the tax, then in general:

Net is what you have after you subtract tax, or net = gross - tax.  The tax amount = gross * tax rate, or (gross*0.28)

Net = Gross - (Gross * tax rate).  For your example, express the 28% as 0.28

10000 = Gross - (0.28)(Gross);  1000 = 0.72 Gross

Divide both sides by 0.72:  Gross = $13,888.89