How the position of payroll items affects
calculating gross pay
QuickPayroll calculates gross pay as follow:
gross = salary + hourly wages + commissions +
company contributions + additions to gross (in
the order you add them to the table).
The position that an addition to gross pay has
in the Employee Template or the Preview Paycheck
window affects
how QuickPayroll calculates deductions based
on a percentage of gross.
Example:
An employee has a salary of $1000, an addition
to gross of $100, and a 2% deduction from gross.
If you enter the addition ahead
of the deduction, QuickPayroll
calculates the 2% deduction on a gross of $1000
+ $100, or $1100. The net salary is $1078 ($1000
+ $100 - $22).
If you enter the deduction ahead
of the addition, QuickPayroll
calculates the 2% deduction on a gross of $1000.
The net salary is $1080 ($1000 - $20 +$100).
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