Are you allowed to make two blog posts on one day? Every now and then we all seem to have an "ah ha!" moment. I had one this week. It has to do with an illustration I'd like to put in my thesis. It is a bit technical on the numbers side, so I wanted to practice sharing my illustration and see who tracks with me. :o) Let me know if you follow...
"There once was a certain man"...who owned a small business. He wanted to give one of his workers a bonus of $500. So the owner went to his accountant and asked him to cut a check to his worker for $500. His accountant said, "I'm sorry, I can't give him exactly $500 because taxes must be withheld, so the amount your worker will actually take home will be less then what you intend because Uncle Sam wants his cut." "But, what I can do is gross up the check." The owner didn't understand and asked his accountant to explain. "Well the percentage of taxes Uncle Sam will take is 25%, so I will pay your worker $500 plus 25% to cover his taxes. " The business owner said, "oh, I get it, so you'll pay him $625?" His accountant said, "No, not $625, but $666." The owner didn't understand and was quite confused. Why was it $666 and not $625? So the accountant pulled out a piece of paper and a pencil and started to explain:
To gross up an amount you need to take the INVERT of the amount you want to gross it up by. So if you want to gross up your check by 25%, you need to take the invert of that, 75%, and divide by that amount instead of multiplying by 25%.
1. Take tax amount (25%) and subtract from 100% to get inverted amount (75%).
2. Take desired net amount ($500) and divide by the inverted tax amount (75%) - this will give you the grossed up amount ($666).
3. To verify your calculation take the grossed up amount ($666) and multiple by the tax amount (25%), this will give you the tax amount ($166).
I found this equation a wonderful example of how we are to approach the Gospel. Jerry Bridges reminds us to preach the Gospel to ourselves everyday. Often I approach the Gospel equation starting with myself. When I do I will almost always get tripped up and stuck on complaints, unmet desires, and circumstances and life, asking why and wondering why I can't get my equation to work out. BUT... when I start the Gospel equation with God my mouth is stopped and I am accountable to God (Romans 3:19).
The business owner couldn't get to the correct amount because he was starting the equation from the wrong end with the wrong figure. The Gospel equation starts with the figure of God, not me. So many times I get tripped up in circumstances of life saying "But what about ... but.. but.." and that's because I am trying to work my own glory into the equation. As my loving husband sweetly reminds me "it's not about you, you are not even in the equation". The Gospel equation is about God and His glory, not mine, and my mouth is stopped and I am accountable to Him. For He is my loving and gracious Lord - all knowing and loving and longsuffering.
.... hmm... so did you follow my illustration? Or was it like the pastor who preached a sermon using a car engine illustration, and at the end of his sermon had two people come up to him. The first a car mechanic who said "wow.. that was the clearest sermon I have ever heard, thank you!" And the second a little old lady, "I had no idea what in the world you were talking about."
I'd love to hear your feedback. :o)
I understand, but then again, I did have your job and spent many hours a week grossing figures up. Payroll is invading all aspects of your life!
ReplyDeleteha ha... if anyone out there was going to understand I thought it'd be you. :o) Probably not a usable illustration for others outside of the numbers field, but fun to see numbers have some spiritual usage in my life. :o)
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