Creating a Gross-Up Payment Model for a Hypothetical Employee

Payroll will calculate the gross pay for a hypothetical employee based on the net pay designated in payment modeling.

To create a gross-up payment for a hypothetical employee

  1. Access Payment Modeling (PR89.1).
  2. Select the company in the Company field.
  3. Select the employee tab. Use the following guidelines to enter field values:
    Employee

    Leave the employee field blank when modeling for a hypothetical employee.

    Payment Date

    Type the date. 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

    Leave this field blank.

    Tax

    Select the value for how you want taxes calculated.

    Net Amount

    Type the net amount to calculate a higher gross amount.

    Pay Frequency

    Select the frequency of pay.

    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

    Select a schedule, grade and step to determine a pay rate.

    Note: If an employee is taxed in multiple states, Payroll uses the resident state in the calculation.
  4. On the Taxes tab, define the federal and state tax requirements.
  5. On the Deductions tab, define the deductions. 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.
    Note:  If you enter an amount in this Exempt field, the application produces an approximation and not an exact payment amount.
  6. Select the Calculate form action to perform the calculations and display the result on the Result tab.