What does grossed up mean?

Answer 1

"Grossed up" refers to the process of adjusting a net amount to reflect its equivalent gross amount, typically to account for taxes or deductions. For example, in finance, if an employee receives a net salary after tax deductions, the grossed-up amount represents what the employer would need to pay before those deductions to achieve that net salary. This term is often used in tax calculations, financial reporting, and compensation analysis.