Net Pay Calculator PowerPoint Presentation Next

Net Pay CalculatorNet Pay CalculatorPowerPoint PresentationPowerPoint Presentation

Net Pay CalculatorNet Pay CalculatorPowerPoint PresentationPowerPoint Presentation

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April 19, 2023 2

What is Net Pay Calculator?What is Net Pay Calculator?

Net Pay Calculator is an Excel spreadsheet designed to determine the effect of certain payroll changes on tax withholding and net pay, such as:

Net Pay Calculator includes state tax tables for Minnesota only. Residents of other states may use the calculator, but the state tax calculated will be Minnesota tax.

Pay raisesSpecial paymentsAchievement awardsDeferred compensationDependant care deferralsFederal or state tax allowances

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April 19, 2023 3

Where is Net Pay Calculator?Where is Net Pay Calculator?

Access the Net Pay Calculator on the Minnesota Management & Budget Web site.

The Web address is:

http://www.mmb.state.mn.us/doc/sema4/calc/netpaycalc2014.xls

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April 19, 2023 4

Recommended use of Net Pay CalculatorRecommended use of Net Pay Calculator

Open the Net Pay Calculator Excel file and this Net Pay Calculator PowerPoint Presentation. Click between the files when you have questions.

This PowerPoint file may also be reviewed slide-by-slide, reading each description of what to enter in the Net Pay Calculator fields.

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April 19, 2023 5

What the colors meanWhat the colors mean

In yellow fields, enter values or accept $0.00.

In white fields, the program calculates or fills in values based on user entries.

In red fields, the program calculates retirement, taxes and net pay based on user entries.

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NET PAY CALCULATOR Biweekly Gross $1.00 (1=MED,2=FICA,3=NONE) 2

Converted Leave Gross $0.00 Retirement % Employee 5.000%

Supplemental Gross $0.00 Supplemental Retire % Employee 0.000%

Deferred Compensation $0.00 Retirement Gross $1.00

Deferred Comp Employer Match $0.00 Retirement Gross Adj. Regular $0.00

Converted Leave Deduction $0.00 Retirement Gross Adj. Supp $0.00

Before-Tax Insurance $0.00 Supplemental Retire Gross $0.00

Depend-MedExp/Park/Bus/Van/HCSP/HSA $0.00 Retirement Ded-Employee $0.05

Taxable Insurance $0.00 Retirement-Supp Ded-Employee $0.00

Taxable Mileage & Meals $0.00 Retirement Refunds $0.00

Personal Use Car - Dollars $0.00 Retirement-BB-Employee $0.00

Federal Allowances 0 FICA Gross $1.00

State Allowances 0 FICA Gross Adjustment $0.00

Tax Marital Status 1=S,2=M 1 FICA Gross YTD $0.00

Additional Federal Tax $0.00 FICA Tax Employee $0.06

Additional State Tax $0.00 Medicare Gross $1.00

Biweekly Federal Tax $0.00 Medicare Gross Adjustment $0.00

Biweekly State Tax $0.00 Medicare Gross YTD $0.00

FWT Taxable Gross $0.95 Medicare Tax Employee $0.01

SWT Taxable Gross (MN) $0.95 Additional Medicare Tax $0.00

Total Biweekly Taxes (Federal, State, FICA and Medicare) $0.07

Total Before Tax Deductions (DefComp,Insur,Depend-MedExp/Park/Bus/Van/HCSP/HSA) $0.05

Total After-Tax Deductions $0.00 Net Pay $0.88

April 19, 2023 6

For best resultsFor best results

1. Fill in actual amounts from a current paystub.

2. Verify that taxes, retirement and net pay are identical to the current paystub. Go to step 3 only when all amounts match.

3. Change something, such as the number of allowances or the amount of deferred compensation.

4. Review the effect of the change on taxes and net pay.

Using these steps ensures the most accurate what if results.Next

NET PAY CALCULATOR

Biweekly Gross $1.00 (1=MED,2=FICA,3=NONE) 2

Converted Leave Gross $0.00 Retirement % Employee 5.000%

Supplemental Gross $0.00 Supplemental Retire % Employee 0.000%

Deferred Compensation $0.00 Retirement Gross $1.00

Deferred Comp Employer Match $0.00 Retirement Gross Adj. Regular $0.00

Converted Leave Deduction $0.00 Retirement Gross Adj. Supp $0.00

Before-Tax Insurance $0.00 Supplemental Retire Gross $0.00

Depend-MedExp/Park/Bus/Van/HCSP/HSA $0.00 Retirement Ded-Employee $0.05

Taxable Insurance $0.00 Retirement-Supp Ded-Employee $0.00

Taxable Mileage & Meals $0.00 Retirement Refunds $0.00

Personal Use Car - Dollars $0.00 Retirement-BB-Employee $0.00

Federal Allowances 0 FICA Gross $1.00

State Allowances 0 FICA Gross Adjustment $0.00

Tax Marital Status 1=S,2=M 1 FICA Gross YTD $0.00

Additional Federal Tax $0.00 FICA Tax Employee $0.06

Additional State Tax $0.00 Medicare Gross $1.00

Biweekly Federal Tax $0.00 Medicare Gross Adjustment $0.00

Biweekly State Tax $0.00 Medicare Gross YTDdicare Gross YTD – NEW!!! $0.00

FWT Taxable Gross $0.95 Medicare Tax Employee $0.01

SWT Taxable Gross (MN) $0.95 Additional Medicare Tax $0.00

Total Biweekly Taxes (Federal, State, FICA a nd Medicare) $0.07

Total Before Tax Deductions (DefComp,Insur,Depend-MedExp/Park/Bus/Van/HCSP/HSA) $0.05

Total After-Tax Deductions $0.00

Net Pay $0.88

April 19, 2023 7

Net Pay CalculatorNet Pay CalculatorTo see the explanation for a field…

CLICK ON IT!

April 19, 2023 8

Biweekly GrossBiweekly Gross

Enter the biweekly gross wage payment. Include regular wages only, such as regular pay, vacation leave or sick leave.

Do not include leave conversions or supplemental earnings, such as overtime, achievement awards or leave payoffs.

Form

Where can this amount be found?

In the Earnings section on the paystub.

Payroll staff: Payroll > Pay Distribution > Paystub, Earnings section.

April 19, 2023 9

Enter the TOTAL dollar amount of leave to be converted to deferred compensation.

Total hours converted X Employee’s rate of pay

Converted Leave GrossConverted Leave Gross




Form

April 19, 2023 10

Enter the gross amount of supplemental earnings. Regular wages are taxed using IRS tax tables. Supplemental wages, such as severance, vacation payoffs, moving expenses and overtime, are taxed at flat rates that occasionally change. Recently, the rates have been 25% for federal and 6.25% for state.

Supplemental GrossSupplemental Gross

Payroll staff can look in two places in SEMA4:1. Set Up HRMS > Payroll Setup > Earnings > Earnings Table. For any earnings code, see Tax

Method on the Taxes page. The Supplemental button is selected if the earnings is taxed using supplemental rates.

2. Payroll > Pay Distribution > Review Paycheck, Paycheck Earnings page. In the Other Earnings box, “Supplemental” displays under the Tax Method column for supplemental earnings. It looks like this:

Is a particular earnings type supplemental?

Form

April 19, 2023 11

Enter the biweekly amount of deferred compensation and/or tax sheltered annuity deduction.

Do not include leave converted to deferred compensation. Enter leave conversion deductions in the Converted Leave Deduction field.

Deferred CompensationDeferred Compensation

In the Before-Tax Deductions section on the paystub.

Payroll staff: Payroll > Pay Distribution > Paystub, Before-Tax Deductions section.

If there is a leave conversion in the Earnings section, subtract it before entering the amount.


Form

April 19, 2023 12

Deferred Comp Employer MatchDeferred Comp Employer Match


In the Employer Paid Benefits section on the paystub.

Payroll staff: Payroll > Pay Distribution > Paystub, Employer Paid Benefits section.

Enter the state’s biweekly contribution to deferred compensation and/or tax-sheltered annuity.

Bargaining agreements and compensation plans indicate the maximum match amounts.

Form

April 19, 2023 13

Enter the same amount entered in the Converted Leave Gross field above.

The leave conversion impacts net pay. Net pay is reduced by the amount of FICA/Medicare and retirement taken on the leave conversion.

Converted Leave DeductionConverted Leave Deduction

Form

April 19, 2023 14

Enter biweekly amounts of employee paid health and dental deductions:

+ Health insurance deduction + Dental insurance deduction

= Total Before-Tax Insurance

Before-Tax InsuranceBefore-Tax Insurance




Form

April 19, 2023 15

Enter biweekly total of other before-tax deductions:

+ Dependent & Medical expense account+ Parking/Transportation

+ Hlth Care Savings Plan/Hlth Savings Acct= Total other before-tax deductions

Depend-MedExp/Park/Bus/Van/HCSP/HSA Depend-MedExp/Park/Bus/Van/HCSP/HSA




Form

April 19, 2023 16

Enter the taxable life insurance premium amount paid by the employer for coverage greater than $50,000.

This amount increases the taxable gross wages.

Taxable InsuranceTaxable Insurance


In the Employer Paid Benefits section on the paystub.

Payroll staff: Payroll > Pay Distribution > Paystub, Employer Paid Benefits section.

The taxable item(s) have an asterisk, such as Basic Life*.

Form

April 19, 2023 17

Taxable mileage is:Reimbursed at a rate greater than the IRS ratePaid with earn codes MIT and MOT

Taxable meals are:Meals without overnight lodgingPaid with earn codes MEI and MEO

Taxable Mileage & MealsTaxable Mileage & Meals




Enter total dollar amount of taxable mileage and meals.

Taxes are withheld at supplemental rates.

Form

April 19, 2023 18

Personal Use Car - DollarsPersonal Use Car - Dollars

Enter the dollar amount calculated for personal use of employer-provided vehicles.

Earn codes used to report personal use of state vehicles:CAR = number of commutes X $3.00CMI = number of miles driven for personal use X IRS mileage rateCRL = amount of annual lease value attributable to personal use




Form

April 19, 2023 19

Federal AllowancesFederal Allowances

Enter the number of federal allowances claimed on the W-4 form (Employee’s Withholding Allowance Certificate).

In the Federal W4 Information section on the paystub.

Payroll staff: Payroll > Pay Distribution > Paystub, Federal W4 Information section.

Where can this number be found?

Form

April 19, 2023 20

State AllowancesState Allowances

Enter the number of state allowances claimed on the W-4/W-4MN form (Employee’s Withholding Allowance Certificate).

In the State W4 Information section on the paystub.

Payroll staff: Payroll > Pay Distribution > Paystub, State W4 Information section

Where can this number be found?

Form

April 19, 2023 21

Enter the marital status claimed on the employee’s W-4 form (Employee’s Withholding Allowance Certificate).

1 = single2 = married

Tax Marital StatusTax Marital Status

In the Federal and State W4 Information section on the paystub.

Payroll staff: Payroll > Pay Distribution > Paystub, Federal and State W4 Information section

Where can this status be found?

Form

April 19, 2023 22

Additional Federal TaxAdditional Federal Tax

Enter the biweekly amount of additional federal tax to be withheld from gross pay, claimed on the employee’s W-4 form (Employee’s Withholding Allowance Certificate).

In the Federal W4 Information section on the paystub.

Payroll staff: Payroll > Pay Distribution > Paystub, Federal W4 Information section

Where can amount this be found?

Form

April 19, 2023 23

Additional State TaxAdditional State Tax

Enter the biweekly amount of additional state tax to be withheld from gross pay, claimed on the employee’s W-4MN form (Employee Withholding Allowance Certificate).

In the State W4 Information section on the paystub.

Payroll staff: Payroll > Pay Distribution > Paystub, State W4 Information section.

Where can this be amount be found?

Form

April 19, 2023 24

Biweekly Federal TaxBiweekly Federal Tax

The amount of federal tax that is withheld.

Net Pay Calculator calculates this amount.

Form

April 19, 2023 25

Biweekly State TaxBiweekly State Tax

The amount of state tax that is withheld.

Net Pay Calculator calculates this amount

Form

April 19, 2023 26

FWT Taxable GrossFWT Taxable Gross

Federal withholding tax taxable gross

Total amount of biweekly wages and other compensation subject to federal tax withholding


Form

April 19, 2023 27

SWT Taxable Gross (MN)SWT Taxable Gross (MN)

State withholding tax taxable gross (MN)

Total amount of biweekly wages and other compensation subject to Minnesota state tax withholding


Form

April 19, 2023 28

(1=MED, 2=FICA, 3=NONE)(1=MED, 2=FICA, 3=NONE)

Enter FICA/Medicare status.Enter “1” if subject to Medicare tax only.Enter “2” if subject to FICA and Medicare tax.Enter “3” if subject to neither FICA nor Medicare tax.

In the Taxes section of the paystub.

Payroll staff: Payroll > Pay Distribution > Paystub, Taxes section.

In the Taxes section, if there is an amount for Fed MED/EE (Medicare), enter “1.” If there is an amount for Fed MED/EE and Fed OASDI/EE (FICA), enter “2.” If neither Fed MED/EE nor Fed OASDI/EE display, enter “3.”

Where can this status be found?

Form

April 19, 2023 29

Retirement % EmployeeRetirement % Employee

Enter the percentage that is used to calculate the retirement deduction.

Payroll/HR staff:

1. Employee’s retirement plan: Payroll > Deductions > Retirement Plans. Note the Benefit Plan, such as AA or AB.

2. Percentage for the Benefit Plan: Set Up HRMS > Payroll Setup > Deduction > Retirement Plan Table. Note the Employee Contribution Percent.

Where can this percentage be found?

Form

April 19, 2023 30

Payroll/HR staff:

1. Set Up HRMS > Payroll Setup > Deduction > Savings Plan Table.

2. Type or select Plan Type 4M and a Benefit Plan.

3. See the Before-Tax percentage on the Employee Limit on Investments page.

Supplemental Retire % EmployeeSupplemental Retire % Employee

Enter the percent deducted for supplemental retirement.

Generally, only employees who have teachers retirement have supplemental retirement.

Where can this percentage be found?

Form

April 19, 2023 31

Retirement GrossRetirement Gross

Wages subject to retirement.


Form

April 19, 2023 32

Retirement Gross Adj. RegularRetirement Gross Adj. Regular

Enter an adjustment to change retirement gross.When do you do this? Enter a negative amount only if there is an entry in the Retirement Gross field and part of the amount is not subject to retirement, e.g., some

severance pay is not subject to retirement.

Payroll staff: Set Up HRMS > Payroll Setup > Earnings > Earnings Table, Special Process page.

Earnings are subject to retirement if Accumulator Code = RET and Effect on Special Balance = A.

Where can this information be found?

Form

April 19, 2023 33

Retirement Gross Adj. SuppRetirement Gross Adj. Supp

Enter the amount to adjust earnings subject to supplemental retirement.

When do you do this? Enter a negative amount only if there is an entry in the Retirement Gross field and part of the amount is not subject to retirement. Generally,

only employees who have teachers retirement have supplemental retirement.

Payroll staff: Same amount that was entered in the Retirement Gross Adj. Regular field.


Form

April 19, 2023 34

Supplemental Retire GrossSupplemental Retire Gross

Enter the amount of wages subject to supplemental retirement.

Generally, only employees who have teachers retirement deductions have supplemental retirement.

Payroll staff: Payroll > Pay Distribution > Review Paycheck, Special Accumulator RET. Multiply the RET earnings by the percentage in the Supplemental Retire % Emple field.

• If the result equals the deduction amount of the before-tax deduction (deduction code RSS_ _ _ on Paycheck Deductions), enter RET earnings in the Supplemental Retire Gross field.

• If the result does not equal the deduction amount, divide the deduction amount by the percentage entered in the Supplemental Retire % Emple field. Enter the result in the Supplemental Retire Gross field.


Form

April 19, 2023 35

Retirement Ded-EmployeeRetirement Ded-Employee

Amount of retirement deducted from the employee’s pay


Form

April 19, 2023 36

Retirement-Supp Ded-EmployeeRetirement-Supp Ded-Employee

Amount of supplemental retirement deducted from the employee’s pay


Form

April 19, 2023 37

Retirement RefundsRetirement Refunds

Used by Statewide Payroll Services only.

Do not enter anything in this field.

Form

April 19, 2023 38

Retirement-BB-EmployeeRetirement-BB-Employee

Used by Statewide Payroll Services only

Do not enter anything in this field.

Form

April 19, 2023 39

FICA GrossFICA Gross

Amount of wages subject to FICA


An amount appears here if the number “2” was entered in the field 1=MED,2=FICA,3=NONE.

Form

April 19, 2023 40

FICA Gross AdjustmentFICA Gross Adjustment

Enter an adjustment amount to reduce the FICA gross.

Do this only if the earnings are not subject to FICA.

Payroll staff: Set Up HRMS > Payroll Setup > Earnings > Earnings Table, Taxes page. The Subject to FICA box is checked if earnings are subject to FICA.


Rarely Used: Most earnings are subject to FICA.

Form

April 19, 2023 41

FICA Gross YTDFICA Gross YTD

Enter the FICA gross year-to-date amount from the previous paystub.

In the Gross to Net Information section on the paystub. Under the FICA Gross column, use the YTD amount.


Rarely Used: Necessary only if FICA Gross YTD exceeds the maximum .

Form

April 19, 2023 42

FICA Tax EmployeeFICA Tax Employee

Amount of FICA tax that is deducted.


FICA Gross X 6.2% = FICA Tax

Form

April 19, 2023 43

Medicare GrossMedicare Gross

Amount of wages subject to Medicare.


An amount appears here if the number “1” or “2” was entered in the field 1=MED,2=FICA,3=NONE.

Form

April 19, 2023 44

Medicare Gross AdjustmentMedicare Gross Adjustment

Enter an adjustment amount to reduce the Medicare gross.

Necessary only if the earnings are not subject to FICA.

Payroll staff: Set Up HRMS > Payroll Setup > Earnings > Earnings Table, Taxes page. The Subject to FICA box is checked if earnings are subject to Medicare.


Rarely Used: Most earnings are subject to FICA.

Form

April 19, 2023 45

Medicare Gross YTDMedicare Gross YTD

Enter the Medicare gross year-to-date amount from the previous paystub.

Necessary only if Medicare Gross + Medicare Gross YTD may be greater than $200,000.

In the Gross to Net Information section on the paystub. Under the Medicare Gross column, use the YTD amount.


Rarely Used: The portion of annual earnings greater than $200,000 is subject to an additional 0.9% Medicare tax.

Form

April 19, 2023 46

Medicare Tax EmployeeMedicare Tax Employee

Amount of Medicare tax that is deducted.


Medicare Gross X 1.45% = Medicare Tax

Form

April 19, 2023 47

Additional Medicare TaxAdditional Medicare Tax

If applicable, the additional amount of Medicare tax that is deducted on the portion of earnings greater than $200,000.

Net Pay Calculator calculates this amount as follows:

1. Medicare Gross + Medicare YTD = Total Medicare

2. Total Medicare - $200,000 = Amount taxed at additional rate

3. Amount taxed at additional rate X 0.9% = Additional Medicare Tax

Form

Reminder: Medicare Gross is from the current paystub, and Medicare YTD is from the previous paystub.

April 19, 2023 48

Total Biweekly TaxesTotal Biweekly Taxes

+ Biweekly Federal Tax+ Biweekly State Tax+ FICA Tax Employee+ Medicare Tax Employee= Total Biweekly Taxes


Form

April 19, 2023 49

Total Before-Tax DeductionsTotal Before-Tax Deductions+ Deferred compensation+ Converted leave deduction+ Before-tax insurance (employee-paid health & dental)+ Depend-MedExp/Park/Bus/Van/HCSP/HSA+ Retirement deduction= Total Before-Tax Deductions


Form

April 19, 2023 50

Total After-Tax DeductionsTotal After-Tax Deductions

Form

Enter the biweekly total of all after-tax deductions+ Union dues+ Charity deductions

+ Deferred compensation (ROTH)+ Long term care insurance+ Other after-tax insurance= Total After-Tax Deductions

Where can this total be found?

In the After-Tax Deductions section on the paystub.

Payroll staff: Payroll > Pay Distribution > Paystub, After-Tax Deductions section.

April 19, 2023 51

Net PayNet Pay

Sum + Biweekly Gross + Converted Leave Gross + Supplemental GrossLess - Total Biweekly Taxes - Total Before-Tax Deductions - Total After-Tax Deductions = Net Pay


Form Next

April 19, 2023 52

…..do you need more help?…..do you need more help?

Agency payroll staff: Contact Statewide Payroll Services.

Thank you!

Documents

Net Pay Calculator PowerPoint Presentation Next