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Set up employees and payroll items

Exclude from gross pay presentation - Examples

When you exclude the hours or amounts of a payroll item from gross pay presentation, the item is excluded from an employee's gross pay, but the details for that item will be included in the check entry screen, on payroll check stubs, and on reports.
The following examples show situations in which you might choose to exclude the hours, amounts, or both from gross pay presentation.
1: Excluding a payroll item Amount from gross pay presentation
In this example, we’ve marked the
Amount from gross pay presentation
 checkbox for an employee reimbursement pay item.
Usually, this isn't money that an employee has earned. These amounts could be for items such as fringe benefits including, but not limited to, gym memberships, transportation benefits, FSAs, tuition reduction, or adoption assistance. But these amounts are still subject to payroll taxes and must therefore be included in the gross pay total (for tax calculation) and in the net pay amount. The amount will be excluded from the gross pay presentation, though.
The payroll check entry screen shows the employee receiving his
$1000.00 salary amount
 and a
$125.00 reimbursement amount
.
In the payroll check entry screen:
  • The $125.00 reimbursement amount is displayed in the details, but is not included in the Gross Pay total, which shows only the $1000.00 salary amount.
  • The taxes are calculated based on the entire $1,125.00 (salary + reimbursement).
  • The net pay ($890.11) was calculated based on the entire $1,125.00 minus the total tax amount ($234.89).
The same information displays in the payroll check stub and in reports.
2: Excluding Hours from gross pay presentation
In this example, we’ve marked the
Hours from gross pay presentation
 checkbox for a shift premium pay item.
This employee earns $20 an hour for his normal (1st) shift, but is paid an additional $10 per-hour shift premium for working the 3rd shift. We set up the Wages pay item for our employee, using an hourly rate of $20. We have then set up a Shift Premium pay item, using an hourly rate of $10, and marking the
Hours from gross pay presentation
 checkbox to make sure that the rate, but
not
 the hours, are included in the employee's totals. 
As shown in the following screenshot, the Gross Pay total hours includes only the
40 hours actually worked
 by the employee, but the
Gross Pay total ($880.00)
 includes both the $800.00 wages amount and the $80.00 shift premium amount.
The same information displays in the payroll check stub and in reports.
3: Excluding Amount and Hours from gross pay and excluding from net pay
In this example, we’ve marked the
Amount from gross pay presentation
 checkbox, the
Hours from gross pay presentation
 checkbox, and the
Net pay
 checkbox for a Reported Tips pay item. 
In this situation, the employee has already received the Reported Tips amount ($250), because he received it directly from his customer.  Therefore, we don't want to include that amount in either the gross pay amount or the net pay amount.  But we do want to include the details on the check to ensure that the correct tax calculations are made for the employee.
The payroll check entry screen shows the employee receiving his
$120.00 Tipped Wages amount
 and shows the
$250.00 Reported tips amount
.
The same information displays in the payroll check stub and in reports.

This article applies to:

  • Product: Accounting CS, Accounting CS Client Access
  • Subject: Payroll checks, Setup
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