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.
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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?
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