Using the Net-to-Gross Calculator

Transcription

1 Chapter 1: Using the Net-to-Gross Calculator This task sheet walks you through the steps for using the Net-to-Gross Calculator. The Net-to-Gross Calculator is a helpful tool when you are calculating special bonus checks or duplicating a check that has been issued manually by the client. The calculator computes the gross amount that, after taxes and deductions, results in the amount of your check. For example, you may currently: a. Issue a check for a net amount say, $ b. Guess at the gross amount c. Estimate the appropriate taxes d. Keep running the numbers until your guessed amount gross amount is close enough With the Net-to-Gross Calculator, you can: a. Enter the target amount (the amount the employee is to receive or has already received) b. Enter any deductions to be figured into the calculation Your work is done! The system performs a reverse calculation to determine the exact gross payment amount that, with taxes and deductions, ends up with the net payment of your target amount. Using the Calculator To use the Net-to-Gross Calculator, perform the following steps: 1. Select Payroll > Process > Other Processing > Net-to-Gross Calculator. The system displays the Net-to-Gross Calculator screen, similar to the one shown in Figure 1. PY-11.1-P-NTGC-02 1

2 Figure 1: Net-to-Gross Calculator Screen Descriptions of the fields in the header area are as follows: Employee ID Check Date Enter the employee who will receive the payment. Enter the date the check will be issued, which must be after the last processed batch payroll pay date. If this payment will be attached to a batch (such as in the Other Payments Batch), enter the pay date of the batch. Voucher Type Enter the type of voucher on which this payment will be issued. Valid entries include: R Regular S Supplemental 2 HRPyramid Task Sheet

3 CAUTION Ensure the pay type and the voucher type match. For example, if the Voucher Type is Supplemental, the pay code s pay type must also be Supplemental. To determine a pay code s pay type, access the pay code record: System Administration > File > Payroll Code Files > Pay Codes. Pay Period Accept the employee s regular pay period that defaults to this field by pressing Enter. The calculated taxes will be based on this pay period. If you change the default pay period (you must otherwise change the employee s payroll record to match), the calculated taxes will not match the taxes on the initialized voucher, resulting in a voucher without an even net payment amount. Deduction Period Use this field to indicate the deduction period for which standard deductions and benefits will be calculated, if deductions will be taken on this voucher. If you leave this field blank, no deductions or garnishments will be computed. The deduction period does not apply to the Supplemental voucher type. Work Shift Use this field to indicate the employee s work shift. If the work shift code has a differential that is included in the pay code, the calculator will use the differential in the gross pay calculation. If not, you may leave this field blank. Target Net Pay Enter the amount you want the final net payment to be. Descriptions of the fields in the lower area follow. You must make only one line entry in this area, as shown in Figure 1. PY-11.1-P-NTGC-02 3

4 [Earnings] Code Description Hours Pay Amount [Deduction] Code Enter the earnings code to be used in making this payment. Only one payment line may be entered. If you will be adding this payment to the Other Payments Batch, you must use an earnings code with a Fixed pay calculation method. This field defaults automatically and describes the payment made to the employee. Enter the number of hours/units allocated to this line amount. The system calculates the payment based on the hours and earnings code. If a Deduction Period is entered, deductions will be initialized using the employee's payroll deduction record. Use this field to enter any voluntary (V) deductions to be taken on this voucher. Description Amount This field defaults automatically and describes the deduction. Enter the amount of the payroll deduction. 2. Fill in the appropriate information. 3. Click F5 - Calculate to perform the calculation. When the calculation process is complete, the system alerts you by displaying the message in Figure 2. Figure 2: Target Amount Reached Message 4. Click Continue. The system calculates the correct figures and displays the Payroll Taxes Withheld screen, as shown in Figure 3. 4 HRPyramid Task Sheet

5 Figure 3: Payroll Taxes Withheld Screen All of the fields are display-only. Your only option is to exit from this display once you look over the gross pay amount, any tax withholding amounts, deductions you specified to be withheld, estimated EIC payments, and the net pay amount (your original Target Net Pay amount in Figure 1). 5. Record the calculations shown in the Payroll Taxes Withheld screen and click OK. The View Deduction Detail? pop-up window appears as shown in Figure 4. Figure 4: View Deduction Detail Pop-up Window 6. Click Yes and the Deduction Detail screen appears as shown in Figure 5. Click OK. Click No and the Update Batch message pop-up window appears as shown in Figure 6. PY-11.1-P-NTGC-02 5

6 Figure 5: Deduction Detail Screen Figure 6: Update Batch Pop-up Window 7. Answer the question by selecting one of the following: a. Select No if you are using the Net-to-Gross Calculator for estimation purposes. The system returns you to the Employee ID field where you can enter another employee for a calculation estimation or exit the Net-to-Gross Calculator. b. Select Yes if you are using the Net-to-Gross Calculator to make a payment to an employee within a batch. Because other changes could occur to the employee s record that would affect the results of this payment (for example, changes to deduction amounts or tax withholding information), review the results of the payment amount after the batch has been initialized to ensure the number is the same as the one just produced. The system requires a batch assignment and presents you with a default batch number, as shown in Figure 7. 6 HRPyramid Task Sheet

7 Figure 7: Batch Number Entry Screen 8. Make note of the batch number. 9. Click F2 - Accept. The system displays a Must Check message pop-up window as shown in Figure Press the Understood button. Figure 8: Must Check Message Pop-Up Window PY-11.1-P-NTGC-02 7

8 Removing a Net-to-Gross Calculation from a Batch Use the following procedure if you wish to remove a net-to-gross calculation from a selected batch. WARNING Make sure you have selected the correct information to delete because it is not recoverable! 1. Select Payroll > Process > Payroll Data Entry > Other Payments Batch Entry. The Other Payments Batch screen appears as shown in Figure 9. Figure 9: Other Payments Batch Screen 2. Enter the appropriate batch number. Press F3 for a list of batches. 3. Click in the Emp ID field and highlight the ID. 4. Press Backspace. 5. Press Enter. The selected employee ID will be deleted. 6. Repeat steps 3-5 for each employee ID to be deleted. NOTE: Click F4 - Del only if you wish to delete all employee IDs from the Other Payments Batch screen. 8 HRPyramid Task Sheet