- Contractor Vs Employee Salary Calculator
- Employee Salary Calculation software, free download
- Employee Software Programs
- Employee Salary Calculation Software Free
- Employee Salary Calculation Software Download
This salary calculator assumes the hourly and daily salary inputs to be unadjusted values. An employee's salary is commonly defined as an annual figure in an employment contract that is signed upon hiring. The state of California has the highest average salary for software developers at $108,916 per year, while Alabama is last with a.
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One of the criteria for exempt workers is that they receive a salary of at least $23,660 per year ($455 per week). If your employee receives less than this amount, you must pay them overtime wages. This may require that you learn how to calculate overtime for salary employees. Using a $10 hourly rate with inputs resulting in an average of eight hours worked each day and 260 working days a year (52 weeks multiplied by 5 working days a week), to find the annual unadjusted salary in order to convert to other periods, the calculation is as simple as: $10 × 8 × (260) = $20,800.
Using formulas in Microsoft Excel is a reliable method to calculate payroll for your business. Microsoft Excel contains over 300 built-in formulas to aid in the production of a functional worksheet. The 'IF' function is a logical test that assess whether a certain condition is met and returns a value according to the conditions. Using the 'IF' function in your worksheet, you can evaluate an employee's hours, determine the number of overtime hours and calculate the employee's gross salary.
Open a Microsoft Excel Spreadsheet
Open a Microsoft Excel spreadsheet.
Enter Employee Names
Click cell 'A1' and type 'Employee.' Press the 'Enter' key. Click cell 'A2' and type the name of the first employee. Continue entering each employee's name in column A.
Enter Employee ID Numbers
Click cell 'B1' and type 'Employee ID.' Press 'Enter.' Click cell 'B2' and type the employee ID of the first employee. Continue entering each employee's ID in column B.
Enter Employee Hourly Rates
Click cell 'C1' and type 'Hourly Rate.' Press the 'Enter' key. Click cell 'C2' and type the hourly rate of the first employee. Continue entering each employee's hourly rate in column B.
Enter Employee Total Hours
Click cell 'D1' and type 'Total Hours.' Press the 'Enter' key. Arch linux bluetooth serial port. Click cell 'D2' and type the total hours of the first employee. Continue entering each employee's total hours in column C.
Display Employee Regular Hours
Click cell 'E1' and type 'Regular Hours.' Press the 'Enter' key. Click cell 'E2' and type '=IF(D2>40,40,D2).' Press the 'Enter' key. This formula instructs Excel to display only the employee's regular hours.
Copy the Formula for Each Employee
Click cell 'E2' and place your mouse at the lower-right corner of the cell. Your mouse pointer changes to a '+' sign. Click the corner of cell 'E2' and drag your mouse to copy the formula for each employee.
Multiply Regular Hours by Hourly Rate
Click cell 'F1' and type 'Regular Salary.' Press 'Enter.' Click cell 'F2' and type '=E2*C2' in the cell. Press the 'Enter' key. This formula multiplies the employee's regular hours by his hourly rate.
Copy the Formula for Each Employee
Click cell 'F2' and place your mouse at the lower-right corner of the cell. Your mouse pointer changes to a '+' sign. Click the corner of cell 'F2' and drag your mouse to copy the formula for each employee.
Display Hours Over 40
Click cell 'G1' and type 'Overtime Hours.' Press 'Enter.' Click cell 'G2' and type ' =IF(D2>40,D2-40,'0')' in the cell. Press the 'Enter' key. This formula evaluates the employee's total hours and displays only hours over 40. If the employee has less than 40 hours, the cell displays a '0.'
Copy the Formula for Each Employee
Click cell 'G2' and place your mouse at the lower-right corner of the cell. Your mouse pointer changes to a '+' sign. Click the corner of cell 'G2' and drag your mouse to copy the formula for each employee.
Multiply Overtime Hours by Overtime Rate
Click cell 'H1' and type 'Overtime Salary.' Press the 'Enter' key. Click cell 'H2' and type '=(C2_1.5)_G2' in the cell. Press 'Enter.' This formula multiplies the employee's overtime hours by the general overtime rate of time and a half.
Copy the Formula for Each Employee
Click cell 'H2' and place your mouse at the lower-right corner of the cell. Your mouse pointer changes to a '+' sign. Click the corner of cell 'H2' and drag your mouse to copy the formula for each employee.
Add Regular Salary and Overtime
Click cell 'I1' and type 'Gross Salary.' Press 'Enter.' Click cell 'I1' and type ' =H2+F2' in the cell. Press the 'Enter' key. This formula adds the employee's regular salary and any overtime.
Copy the Formula for Each Employee
Click cell 'I2' and place your mouse at the lower-right corner of the cell. Your mouse pointer changes to a '+' sign. Ultimate spider man game pc. Click the corner of cell 'I2' and drag your mouse to copy the formula for each employee.
Format the Cells to Dollars
Click cell 'C2' and drag your mouse to highlight each employee's hourly rate. Click the 'Home' tab and click the '$' sign in the 'Number' group to format the cells to include a dollar sign and increase the number to two decimal places. Apply this format to the dollar amounts in column 'F,' 'H' and 'I.'
Apply Formatting to Cells
Click cell 'A1' and drag your mouse to cell 'I1.' Click the 'Home' tab and click the 'B' sign in the 'Font' group to apply bold formatting to the cells.
Tip
- If an employee is a salary employee and does not have an hourly rate nor receives overtime for hours worked over 40, type the employee's salary amount in column 'F.'
References (2)
About the Author
Angela M. Wheeland specializes in topics related to taxation, technology, gaming and criminal law. She has contributed to several websites and serves as the lead content editor for a construction-related website. Wheeland holds an Associate of Arts in accounting and criminal justice. She has owned and operated her own income tax-preparation business since 2006.
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M., Angela. 'How to Calculate the 'Gross Salary' for Each Employee By Using a Formula.' Small Business - Chron.com, http://smallbusiness.chron.com/calculate-gross-salary-employee-using-formula-12492.html. 11 March 2019.
M., Angela. (2019, March 11). How to Calculate the 'Gross Salary' for Each Employee By Using a Formula. Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/calculate-gross-salary-employee-using-formula-12492.html
M., Angela. 'How to Calculate the 'Gross Salary' for Each Employee By Using a Formula' last modified March 11, 2019. http://smallbusiness.chron.com/calculate-gross-salary-employee-using-formula-12492.html
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Employees must get paid for the work they do, and it is the employer’s responsibility to ensure that this happens. You can handle employee payroll in different ways, such as manually, with an in-house computerized system or outsourcing it to a payroll service. Each system requires different tasks. Chemistry programs for ti nspire cx cas amazon. For instance, manual payroll does not require direct deposit, but an in-house computerized system has that capability.
Regardless of the system used, some general principles apply when calculating employee payroll.
Calculate Pay for Hourly Workers
Calculate pay for hourly workers. Typically, hourly workers are paid based on their time card/time sheet data, which include the number of hours worked each week. Pay the hours according to the pay frequency. Suppose the employee earns $11 an hour, paid biweekly. His time card for two consecutive weeks reflects 40 hours worked.
Regular calculation: 40 hours x 2 weeks = 80 hours x $11/hour = $880 (gross regular pay).
Pay overtime, if applicable, for hours worked over 40 in the workweek. Pay overtime at 1.5 times the worker’s regular pay rate. Suppose the employee's time card for two weeks shows 50 hours were worked each week. Pay 80 hours at the regular pay rate. Then do the overtime calculation: 10 hours x 2 weeks = 20 hours x $16.50 ($11 x 1.5) = $330 (gross).
Calculate Pay for Salaried Workers
Calculate pay for salaried workers. The U.S. Department of Labor (DOL) notes that salaried employees are typically paid a fixed wage each pay period. Descargar manual de ciencias forenses y criminalistica pdf to excel pdf. Furthermore, most salaried workers do not qualify for overtime pay. Notably, the DOL has specific criteria regarding overtime for salaried employees, so check with your state labor board (see Resources) to know which salaried workers are exempt from overtime protection laws. If the salaried worker is not exempt, pay her overtime if she works it.
To determine a salaried worker’s pay per pay period, divide the annual salary into the total yearly pay periods. For instance, say she earns $64,000, paid semimonthly.
Calculation: $64,000 / 24 semimonthly pay periods = $2,666.67 (semimonthly salary).
Subtract Statutory Deductions
Subtract statutory deductions from gross income. This includes payroll taxes, such as federal income tax, Social Security tax and Medicare tax. If the state charges income tax, withhold it as well. You can use payroll software to compute the tax for you or you may do so manually.
If you do the latter, consult the Internal Revenue Service's Circular E (Employer's Tax Guide) for the respective tax year and use the employee’s W-4 form to determine the federal income tax amount, which varies by employee. Similarly, state income tax (if applicable) depends on the employee's state income tax form and the state withholding tax tables.
Calculate Medicare tax at 1.45 percent of all gross earnings. Figure Social Security tax at 6.2 percent of gross earnings, until the employee reaches the yearly wage limit.
Deduct Voluntary Deductions
Deduct voluntary deductions. These include parking fees; medical, dental, life and disability insurance; and retirement benefits. The amount varies by deduction type and the company plan.
Depositing Deductions
Deductions must be deposited to appropriate government agency accounts and remitted to benefits administrators. In the United States, employers are expected to deposit tax withholdings to accounts with the IRS and their state's revenue agency. Deductions are submitted to benefits administrators in a separate process.
In special circumstances, such as child support deductions or wage garnishment payments, your business will be informed as to the process for submitting these payments by the agency responsible for collecting them, such as the local sheriff (for most wage garnishments) or a department of child welfare (for child support payments).
Issue Checks or Direct Deposit
Employee wages are paid via paper check or direct deposit. Issuing paper checks is generally straightforward, though it is important to ensure the accuracy of the information on the check. Direct deposit is another option: You can provide employees with a form on which they provide bank account information. Your payroll processor, or your bank, can facilitate the direct deposits from your payroll account into employees' personal accounts.
Contractor Vs Employee Salary Calculator
Items you will need
- Time card/time sheet
- IRS Circular E (Employer's Tax Guide)
- State withholding tax tables
- W-4 form
- State income tax form
Employee Salary Calculation software, free download
Tip
- Statutory deductions also include child support and wage garnishments. Consult the garnishment paperwork for deduction instructions. Notably, an employer cannot withhold more than 25 percent of disposable compensation for garnishments.
References (4)
Resources (3)
About the Author
Grace Ferguson has been writing professionally since 2009. With 10 years of experience in employee benefits and payroll administration, Ferguson has written extensively on topics relating to employment and finance. A research writer as well, she has been published in The Sage Encyclopedia and Mission Bell Media.
Cite this Article Choose Citation Style
Ferguson, Grace. 'How to Calculate Employee Payroll.' Small Business - Chron.com, http://smallbusiness.chron.com/calculate-employee-payroll-868.html. 16 March 2019.
Employee Software Programs
Ferguson, Grace. (2019, March 16). How to Calculate Employee Payroll. Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/calculate-employee-payroll-868.html
Employee Salary Calculation Software Free
Ferguson, Grace. 'How to Calculate Employee Payroll' last modified March 16, 2019. http://smallbusiness.chron.com/calculate-employee-payroll-868.html
Employee Salary Calculation Software Download
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