Creating a Gross-to-Net Payment Model for a Hypothetical Employee
Create a payment model for a hypothetical employee. For a Gross-to-Net payment model, you will select a gross amount and apply deductions. Payroll calculates the gross amount to a lower net amount.
To create a gross-to-net payment model for a hypothetical employee
- Access Payment Modeling (PR89.1).
- Select the company in the Company field.
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Select the Employee tab. Use the following guidelines to enter field values:
- Employee
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Leave the employee field blank when modeling for a hypothetical employee.
- Payment Date
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Type the date. All taxes and deductions are based on this date. If the date is left blank, Payroll date defaults.
- Hours
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Type the number of hours.
- Gross Amount
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Type the gross amount.
- Tax
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Select the value for how you want taxes calculated.
- Net Amount
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Leave this field blank. Payroll calculates the net based on the gross and deductions.
- Pay Frequency
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Select the frequency of pay.
- Pay Rate
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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
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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. - On the Taxes tab, define the federal and state tax requirements.
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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.
- Select the Calculate form action to perform the calculations and display the result on the Result tab.