Creating a Gross-Up Payment Model for an Existing Employee

Create a payment model by changing pay rates, taxes and benefits. Payroll performs net-to-gross calculations based on the value defined in the Net Amount field on Payment Modeling (PR89.1).

To create a gross-up 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 override 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).

    – or –

    Choose not to Inquire if you prefer to enter specific variables on the following steps.

  4. Select the employee tab. Use the following guidelines to enter field values when changing 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, the system date defaults.

    Hours

    Type the number of hours.

    Gross Amount

    Leave 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.

    – 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 in the calculation.
  5. On the Taxes tab, define the tax parameters.

    – or –

    Let Payroll default to the employee's tax elections (exemptions, marital status, tax state, etc.) Override the federal tax calculation with an entry in the Override, and Amount or Percent fields. On the taxes tab, define the tax parameters.

  6. On the Deductions tab, define the deductions.

    – 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.

    Note:  If you enter an amount in this Exempt field, the application produces an approximation and not an exact payment amount.
  7. Select the Calculate form action to perform the calculations and display the result on the Result tab.
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