When do I use payment modeling?

Payments can be modeled to perform a gross-up (net-to-gross) calculation or a gross-to-net payment calculation. You can perform these calculations for an existing employee or choose to model a payment without specifying an employee.

When you inquire on a specific employee, values defined on the employee record default in the appropriate fields. You can enter a deduction cycle and a payment date to retrieve actual deduction information. You can override any field on the form to process What If scenarios for an employee.

If you do not select an employee, you must enter the desired deduction amounts or percentages by deduction type, and select the applicable taxes to include.

The taxation options for payment modeling include the option to change:

• Number of exemptions

• Marital status

• The state for which taxes are paid

• County and city tax authorities

  Payment modeling does not automatically update payroll data files. After you perform payment modeling, you can transfer the information to a manual payment.