CALCULATE PAYROLL GENERAL NOTES: - When summing up pay for benefits, deductions, etc. - ignore tax exempt pay. - Hours Worked = total hours - Hours Paid = st hrs + ot hrs x ot multiplier + dt hrs x 2 1. Check to make sure employee not already calculated - skip if is. 2. Set FACTOR - Read # periods per year for pay group (52 if weekly, etc.) 3. Calculate hourly rate of pay if SALARY employee (already know hourly pay for hourly employees). pay = salary / 40 if weekly pay = salary / 80 if bi-weekly pay = salary / 88 if semi-monthly pay = salary x 12 / 52 / 40 if monthly 4. SICK LEAVE a) accumulate new sick leave available sick leave hours per year / factor (see #2 for factor) b) make sure accumulated sick leave does not exceed maximum allowed to accumulate c) make sure sick leave hours to be paid does not exceed accrued sick leave - reduce to accrued amount if necessary d) calculate sick leave pay: hours x pay per hour x multiplier for sick leave pay e) save new accumulated leave to employee file 5. VACATION a) accumulate new vacation hours available determine which vacation period rates apply based on hire dare to today vacation hours per year / factor (see #2 for factor) b) make sure accumulated vacation does not exceed maximum allowed to accumulate c) make sure vacation hours to be paid does not exceed accrued vacation - reduce to accrued amount if necessary d) calculate vacation pay: hours x pay per hour x multiplier for vacation pay e) save new accumulated leave to employee file 6. Calculate total pay - if $0.00 total, skip to next employee 7. SAVINGS/PENSION PLANS a) If plan is for a specific group, and this employee is not in that group, skip to next plan/calculation b) If plan is for hourly only, and employee is salaried, skip to next plan/calculation c) If plan is for salaried only, and employee is hourly, skip to next plan/calculation d) If employee must contribute to be in plan, and employee has no rate entered, skip to next plan/calc e) If flat rate for employee, set that amount to deduction f) If percentage rate, calculate deduction based on wage base specified in plan. g) For company contribution portion: aa) if company is matching employee deduction, reduce amount based on max matched if that is appropriate. Otherwise, make same as employee deduction. bb) if company is contributing a flat amount, make amount equal the flat amount to be contributed. 8. GENERAL BENEFITS a) Make sure employee is in group, if benefit is for a specific group b) Make sure employee is right type (hourly or salaried) c) Calculate benefit based on HOW FIGURED. If there is a yearly ceiling entered, sum up total annual pay including the pay for this period to see if all, some, or none of this period's pay applies for benefit. If calculation is based on WEEK ONE, then make sure pay period includes the 1st of the month. If calculation is a weekly amount, multiply the weekly amount by: 52 / number of periods per year 9. FEDERAL TAX a) Add up all pay (except non-taxable pay) b) If federal exemptions claimed > 95 then no federal tax c) If exemptions claimed > 69 subtract 70 from exemptions for federal calcs d) If exemptions claimed > 49 subtract 50 from exemptions for federal calcs e) If exemptions claimed > 30 subtract 30 from exemptions for federal calcs f) figure total pay g) reduce pay by pensionplan deductions that are exempt from federal tax h) multiply pay times factor (see #2) so that looking at annualized pay i) subtract (exemptions * annual exemption allowance) from pay j) figure annual tax by looking at appropriate table k) divide annual tax by factor (see #2) so tax is per pay period l) if extra FIT per period, add either the flat amount or the percentage indicated to tax calculated from table m) FUI tax (company contribution) aa) Calculate wages YTD except non-tax, less pension deductions if exempt from FUI bb) Calculate wages THIS PERIOD except non-taxable pay. Reduce pay by pension deduction if exempt plan is exempt from FUI tax. cc) Determine what portion of wages apply (not over ceiling) dd) Calculate tax 10. FICA TAX a) Add up all pay (except non-taxable pay) b) subtract pension/plan deductions that are exempt from FICA taxes c) Add up prior pay year-to-date less prior pension plan deductions that are exempt from FICA taxes d) if federal exemptions = 98 or 97 or (>29 and <70) then no FICA tax c) if total prior pay > FICA ceiling, no FICA tax d) if total prior pay + pay this period > FICA ceiling then tax applies only to FICA ceiling less prior wages e) calculate FICA tax on appropriate pay for this period f) calculate company FICA tax on same pay as for "e" 11. MEDICARE TAX a) Add up all pay (except non-taxable pay) b) subtract pension/plan deductions that are exempt from FICA taxes c) Add up prior pay year-to-date less prior pension plan deductions that are exempt from FICA taxes d) if federal exemptions = 98 or 97 or (>29 and <70) then no MEDICARE tax c) if total prior pay > MEDICARE ceiling, no MEDICARE tax d) if total prior pay + pay this period > MEDICARE ceiling then tax applies only to MEDICARE ceiling less prior wages e) calculate MEDICARE tax on appropriate pay for this period f) calculate company MEDICARE tax on same pay as for "e" 11a. SUI TAX (company contrib) a) Add up all pay (except non-taxable pay) b) subtract pension/plan deductions that are exempt from SUI taxes c) Add up prior pay year-to-date less prior pension plan deductions that are exempt from SUI taxes d) if total prior pay > SUI ceiling, no SUI tax e) if total prior pay + pay this period > SUI ceiling then tax applies only to SUI ceiling less prior wages e) calculate SUI tax on appropriate pay for this period 12. STATE, LOCAL, and CITY a) if State/Local/City Exemptions >97 then no state tax b) if State/Local/City Exemptions >69 and <90 then use exemptions - 70 for calcs c) subtract from pay pension deductions that are exempt from state/local/city tax d) if "deduct federal tax from pay first" subtract from pay the FIT tax e) annualize pay (pay x factor from #2) f) figure reductions of pay based on claimed exemptions: add amount for one exemption if claiming >0 if married, add another amount for one exemption if >=2 exemptions, add amount for two exemptions if >=3 exemptions, add amount for three exemptions if >3 exemptions, add (amount for 4+ exemptions) x (exemptions claimed minus three) If max exemption allowed is percent of gross pay: -if 0 entered, skip this -calculate the percentage. If this is greater than exemptions figured use calculated percentage instead -if yearly max. deduction allowed, and the calculated exemption is greater than the yearly max (if it is not 0) then reduce exemption amount to the yearly max. g) calculate taxable pay: pay - exemption allowances if claiming <0 exemptions, then subtract abs(exemptions) * factor (from #2) h) if taxable pay <= 0 then no state/local/city tax i) calculate tax from state/local/city table j) reduce tax for tax credit: If one exemption claimed, subtract amount for one exemption from tax If two exemptions claimed, subtract 2 x amount for two exemptions from tax If three exemptions claimed, subtract 3 x amount for 3 exemptions from tax If >3 exemptions, subtract exemptions x amount for 4+ exemptions from tax If resulting tax is less than $0.00, make it $0.00 j) divide tax by factor (from #2) so tax is per period not year k) calculate extra income tax and add to tax figured 13. GENERAL DEDUCTIONS a) Make sure employee is in group, if deduction is for a specific group b) Make sure employee is right type (hourly or salaried) c) Calculate deduction based on HOW FIGURED. If there is a yearly ceiling entered, sum up total annual pay including the pay for this period to see if all, some, or none of this period's pay applies for deduction. If calculation is based on WEEK ONE, then make sure pay period includes the 1st of the month. If calculation is a weekly amount, multiply the weekly amount by: 52 / number of periods per year 13a. GENERAL COMPANY CONTRIBUTIONS a) Make sure employee is in group, if contribution is for a specific group b) Make sure employee is right type (hourly or salaried) c) Calculate contribution based on HOW FIGURED. If there is a yearly ceiling entered, sum up total annual pay including the pay for this period to see if all, some, or none of this period's pay applies for deduction. If calculation is based on WEEK ONE, then make sure pay period includes the 1st of the month. If calculation is a weekly amount, multiply the weekly amount by: 52 / number of periods per year 14. Calculate net pay (pay less deductions). If less than 0, remove pension deductions. If still less than 0, remove deductions (after user OK or change of amount) for specific employee until net pay is a positive number (or zero). 15. Update employee/week files, set calculate flag.