Such increased costs can quickly deplete an agency's awards budget. True Value and Costs Become Hidden. When agencies gross up cash awards, they often have the extra calculations performed by the payroll office after the award has been proposed and approved. For the nominating and approving officials, the focus remains on the net amount and not on the true value of the award. That true value or actual total cost is the awards spending that must be monitored and managed.
Spending is Reported Inaccurately.
The gross amount is the actual cost of the award to the agency, not the net amount received by the employee. For information about tax withholding on awards, contact your local IRS office.