Monetary award gross amount Date: Mon, 17 May 1999 08:29:00 -0400 From: Charlene Simpson To: "AO - All Administrative Officers" CC: Charlene T Simpson , Linda D Rann , Connie L Smith , Carole A Coburn , Sharon L Doung Subject: Monetary award gross amount We have received several requests for "something in writing" that explains how to calculate the gross value of monetary awards. We understand that when awards are granted, many supervisors focus on how much money the recipient will actually pocket after taxes in determining the gross amount of the award. Please keep in mind however, that departmental policy dictates that the gross amount of any STAR Award must be based on the overall tangible and/or intangible benefits derived from the employee's contribution, and the write-up must justify the expenditure of that gross amount. That is why the current awards guidebook does not discuss a formula to determine gross amount from net amount. Since the question has been raised on several occasions however, we are providing the formula that was used in the past to determine the gross amount of the old "on-the-spot" awards. You may recall that this formula only provides an "approximate" gross value because the actual tax bite varies from State to State. To calculate the approximate gross amount of an award, divide the net amount by 55% (.55). Using this formula, the following chart provides gross amounts for net awards in $50 increments up to $500: NET AMT. GROSS AMT. $50 $91 100 182 150 273 200 364 250 455 300 546 350 637 400 728 450 819 500 910