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Set up employees and payroll items

Calculation type examples

You can set the calculation type on the
Main
 tab of the
Payroll Items
 screen. The options in this section vary depending on the type of the current payroll item.
Select the appropriate calculation type from the drop-down list and then enter the amount, rate, or percentage.
Refer to the following examples for more information:

Example 1- employer contributions

In this example, the employee receives regular wages (which use the Hourly rate calculation method) and also receives a 401k Employer Match contribution amount (which uses the Hourly rate - Total hours calculation method).
During this pay period, the employee worked 40 regular hours, 10 overtime hours, and 6 double-time hours. The application totals the hours as follows.
Hours worked
Hours x multiplier
Total hours
40 Regular
40 x 1
40.00
10 Overtime
10 x 1.5
15.00
6 Double-time
6 x 2.0
12.00
Total
N/A
67.00
The Employer Match contribution for this employee is 1.4 per hour worked (Total hours x 1.4).
When you enter wage hours for the employee, the application automatically calculates the 401k Employer Match contribution (67 hours x 1.4).

Example 2 - deduction items

In this example, the employee receives regular wages (which use the Hourly rate calculation method) and has a Union Dues deduction amount (which uses the Hourly rate - Total hours calculation method).
During this pay period, the employee worked 40 regular hours, 10 overtime hours, and 6 double-time hours. The application totals the hours as follows.
Hours worked
Hours x multiplier
Total hours
40 Regular
40 x 1
40.00
10 Overtime
10 x 1.5
15.00
6 Double-time
6 x 2.0
12.00
Total
N/A
67.00
The Union Dues deduction for this employee is $0.25 per hour worked, with a per-check limit of $15.
When you enter wage hours for the employee, the application automatically calculates the Union Dues deduction (67 hours x $0.25 = $16.75, but a $15 limit is applied).

Example 3 - pay items

Hourly rate - total hours
In this example, the employee receives regular wages (which use the Hourly rate calculation method) plus a Union Premium Pay amount (which uses the Hourly rate - Total hours calculation method).
During this pay period, the employee worked 40 regular hours, 10 overtime hours, and 6 double-time hours. The application totals the hours as follows.
Hours worked
Hours x multiplier
Total hours
40 Regular
40 x 1
40.00
10 Overtime
10 x 1.5
15.00
6 Double-time
6 x 2.0
12.00
Total
N/A
67.00
When you enter wage hours for the employee, the application automatically calculates the Union Premium Pay (67 hours x $2) as a separate payroll item when the wage hours are entered.
Salary - hours sensitive
In this example, the employee’s annual pay (Salaried – Hours sensitive calculation type) is $75,000.00, and she is on a Monthly payroll schedule. Her monthly pay rate, then is $6,250.00. The employee worked 20 hours of overtime during this payroll period. Adding these hours during payroll check entry increases her pay amount to $7331.73, although her rate is still $6, 250.00.
When this employee works fewer than the required hours, her pay amount decreases to $5,949.52, although her rate is still $6, 250.00.
Salary amount
In this example, the employee’s pay item (Salary – Managers) uses the Salary calculation type. Her salary amount is $75,000.00 and she is on a Monthly payroll schedule. Accounting CS divides the salary amount into 12 payments of $6,250.00. The employee worked 20 hours of overtime during this payroll period, but adding those hours during payroll check entry does not change her pay amount.

This article applies to:

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