Creating a Gross-to-Net Payment Model for an Existing Employee

Change an existing employee's pay rates, taxes, and benefits to create a payment model. You select the gross amount and apply deductions, which Payroll calculates to a lower net amount.

To create a gross-to-net payment model for an existing employee

  1. Access Payment Modeling (PR89.1).
  2. Select the Company and Employee in the appropriate fields.
    Note: In some cases you might choose not to inquire and display the current default values for a specific employee. If many of the default values must be changed, you can type in the new values rather than overriding all of the displayed default values.
  3. Select the Inquire form action to display the current default values for the employee. The default values are defined through Employee (HR11.1).
  4. Select the employee tab. Use the following guidelines to enter field values to modify the default values for the payment model calculation.
    Employee

    Select an employee.

    Payment Date

    Type the date in the field. All taxes and deductions are based on this date. If the date is left blank, Payroll date defaults.

    Hours

    Type the number of hours.

    Gross Amount

    Type the gross amount.

    – or –

    Let Payroll calculate the gross amount in the field.

    Tax

    Select the value for how you want taxes calculated.

    Net Amount

    Leave blank. Payroll will calculate the net based on the gross and deductions.

    Pay Frequency

    Select the pay frequency.

    – or –

    Leave the field blank for the frequency to default from Employee (HR11.1).

    Salary Class

    Select the salary class.

    – or –

    Leave the field blank for the salary class to default from Employee (HR11.1).

    Pay Rate

    If the employee is hourly, enter the number of hours and leave the Pay Rate field blank to allow Payroll to compute the pay rate.

    – or –

    Type the pay rate and leave the hours field blank to allow Payroll to compute the hours.

    Schedule, Grade, Step

    These will default for an existing employee.

    Note: :If an employee is taxed in multiple states, Payroll uses the resident state when calculating a payment model.
  5. On the Taxes tab, define the tax parameters.

    – or –

    Let Payroll default to the current employee's tax elections. (exemptions, marital status, tax state) Use the Override field to indicate whether the change is a replacement, addition, or exemption, and whether the value is an amount or a percentage. The Amount or Percent field holds the value.

  6. On the Deductions tab, define the deductions.
    Note:  If you enter an amount in this Exempt field, the application produces an approximation and not an exact payment amount.

    – or –

    Let Payroll default by selecting a deduction cycle. If you do not define a deduction cycle, you can select deductions by typing X in the appropriate fields. For non-tax deductions, enter A (Amount) or P (Percent), and enter the dollar amount of the deduction.

  7. Select the Calculate form action to perform the calculations and display the result on the Result tab.
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