Once you know the details of your employees' withholding allowances and benefit costs, you can calculate the payroll and add it to the books.

01. Calculate Work Hours fo Payroll

The first thing you need to do is collect time records from each person being paid hourly.

02. Calculate Work Hours fo Payroll

Some businesses use time clock or time sheets and after that a manager review the time records for each employee.

03. Calculate Work Hours fo Payroll

Then the records are sent to the bookkeeper.
With time record in hand, you have to...

04. Calculate Work Hours fo Payroll

(..) calculate gross pay for each employee.
If nonexempt employee worked 45 hours and is paid $12 an hour, you calculate gross pay like this:
40 hours x $12 = $480

05. Calculate Work Hours fo Payroll

In addition you must prepare payroll for salaried employees.
All you need to know are their base salaries.
If you pay $30,000 salary a year and the employee is paid twice a month (24 total pay periods)...

06. Calculate Work Hours fo Payroll

(...) that employee's gross pay will be $1,250 for each pay period.

SCHEDULE A FREE CONSULTATION:

07. Calculate Work Hours fo Payroll

Employees must report tips to their employers on an IRS FORM 4070.
Here's how to calculate gross taxable wages for an employee who receives tips...

08. Calculate Work Hours fo Payroll

Base Wage + Tips
= Gross Taxable Wages
$3 x 40 hours per week + $300 = $420

09. Calculate Work Hours fo Payroll

For salesperson on a commission of 10%, you calculate payroll using this formula:
$50,000 x 0.10 = $5,000

How Do You Calculate Work Hours fo Payroll?

If you have questions, schedule free consultion with Simplified Payroll and Bookkeeping!