Payroll Calculations

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Payroll Calculations Powered By Docstoc
					GUIDELINES

    GENERAL

    Definition: A payroll calculator is designed to assist you in calculating net pay and payroll taxes due.



    Objective: Use this worksheet to determine the net pay amount for a payroll check to be issued to an employee and to calculate
    the amount of taxes owed during the time for which the payroll calculation is prepared.



    The Spreadsheet: This worksheet provides a systematic method of calculating payroll expenditures, payroll deductions and
    payroll taxes due. The entries listed in the spreadsheet should be adapted to the particular business for which the calculation is
    being made, with appropriate changes in the entries as required.



    Procedure:
    1. Populate all applicable highlighted in GREEN cells in the "Payroll Calculations" worksheet.
    2. Populate all applicable cells For each employee. Cells that require your input are highlighted in GREEN.
    3. The Payroll Calculations worksheet will automatically calculate the gross pay, taxes withheld [based on a percentage
    withholding], net pay and payroll taxes due.


    ANALYSIS

    1. The cash position at the end each quarter should be adequate to meet the expense requirements for the following quarter. If
    there is not sufficient cash to meet the expenses of the subsequent quarter, then additional cash will have to be injected or cash
    paid out must be reduced. more useful when the budgeted information can be compared with actual information as it develops.
    2. The projection becomes
    It is important to follow through and complete the actual columns as the information becomes available. Utilize the overhead
    budget projection to assist in setting new goals and planning operations for more profit.




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      How to use this spreadsheet:
      (1) Fill in all column rates that are highlighted in green, as applicable to your business
      All other calculations will automatically be updated when you change the cells highlighted in green
      Check the entries listed in the spreadsheet to see if they are pertinent to your business and modify them as needed

      By using this spreadsheet you will be able to calculate:
      (1) Gross pay
      (2) Taxes to withhold based on a percentage level of gross pay
      (3) Net pay, amount of the paycheck issued to the employee
      (4) Total payroll for the period
      (5) Payroll taxes due for Federal Forms 941/944
      (6) State taxes due for State Income Tax Withheld Forms

      Payroll Calculations
      Period I                     Week Ending Hourly Rate Hours Worked                  Gross Pay          Fica W/H        Medicare W/H Federal Tax W/H State tax W/H         Net Pay
      Employee A                   (insert date) (insert rate) (insert hours)          (rate x # hrs)        4.20%             1.45%          10%             5%         (Col. E - Col.(F:I))
                                       1/31/2011        10.00            80.00                  800.00            33.60             11.60          80.00           40.00             634.80
                                       2/28/2011        10.00            70.00                  700.00            29.40             10.15          70.00           35.00             555.45
                                       3/31/2011        10.00            60.00                  600.00            25.20              8.70          60.00           30.00             476.10
      Total for Employee A                                              210.00                2,100.00            88.20             30.45         210.00         105.00            1,666.35


      Employee B
                                       1/31/2011           8.50              40.75             346.38               14.55            5.02            34.64             17.32          274.85
                                       2/28/2011           8.50              39.25             333.63               14.01            4.84            33.36             16.68          264.73
                                       3/31/2011           8.75              50.00             437.50               18.38            6.34            43.75             21.88          347.16
      Total for Employee B                                                  130.00           1,117.50               46.94           16.20           111.75             55.88          886.74




      Period 1 Totals                                              Hours Worked         Gross Pay           Fica W/H        Medicare W/H Federal Tax W/H State tax W/H           Net Pay
      Employee A                                                          210.00           2,100.00               88.20             30.45         210.00         105.00              1,666.35
      Employee B                                                          130.00           1,117.50               46.94             16.20         111.75           55.88               886.74
      Period 1 Totals                                                     340.00           3,217.50              135.14             46.65         321.75         160.88              2,553.09


      Period 1 Payroll Taxes Due                                                                            Fica W/H        Medicare W/H Federal Tax W/H State tax W/H
      Employee portion rate                                                                                    4%               1%            10%             5%
      Employee tax W/H portion                                                                                   135.14             46.65         321.75         160.88

      Employer portion rate                                                                                   6.20%            1.45%             0%               0%
      Employer tax portion                                                                                        199.49            46.65             0.00              0.00

      Form 941/944 Taxes Due                                                                                Fica W/H        Medicare W/H Federal Tax W/H State tax W/H
      Employee tax W/H portion                                                                                   135.14             46.65         321.75         160.88
      Employer tax portion                                                                                       199.49             46.65           0.00            0.00
                                                                                                                 334.62             93.31         321.75         160.88
      Total 941/944 Taxes Due



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      How to use this spreadsheet:
      (1) Fill in all column rates that are highlighted in green, as applicable to your business
      All other calculations will automatically be updated when you change the cells highlighted in green
      Check the entries listed in the spreadsheet to see if they are pertinent to your business and modify them as needed

      By using this spreadsheet you will be able to calculate:
      (1) Gross pay
      (2) Taxes to withhold based on a percentage level of gross pay
      (3) Net pay, amount of the paycheck issued to the employee
      (4) Total payroll for the period
      (5) Payroll taxes due for Federal Forms 941/944
      (6) State taxes due for State Income Tax Withheld Forms

      Payroll Calculations
      Fica                                334.62
      Medicare                             93.31
      Federal                             321.75
      Total 941/944 Taxes Due             749.68

      Total State Taxes Due
      State Tax W/H                       160.88
      Total State Taxes Due               160.88




© Copyright 2013 Docstoc Inc.                                                                                               3
				
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Description: This Payroll Calculator will allow a company to calculate gross pay, taxes to withhold, net pay, total payroll, payroll taxes due, and state taxes due for a certain payroll period. This form provides guidelines for how to populate and use the spreadsheet and well as advice on how to analyze the payroll data that the spreadsheet generates. Company management, human resources officers, or accountants can use this form to determine the net pay amount for employee payroll checks and the amount of taxes the company owes.