Net Pay Calculator PowerPoint Presentation Next 

August 17, 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 raises Special payments Achievement awards Deferred compensation Dependant care deferrals Federal or state tax allowances Next 

August 17, Where is Net Pay Calculator? Access the Net Pay Calculator on the Minnesota Management & Budget Web site. The Web address is: Next 

August 17, Recommended 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. Next 

August 17, What 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. 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 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

August 17, For 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!!!dicare 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 August 17, Net Pay Calculator To see the explanation for a field… CLICK ON IT!

August 17, Biweekly 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.

August 17, Enter the TOTAL dollar amount of leave to be converted to deferred compensation. Total hours converted X Employee’s rate of pay Converted Leave Gross Where can this amount be found? In the Earnings section on the paystub. Payroll staff: Payroll > Pay Distribution > Paystub, Earnings section.  Form

August 17, 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 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

August 17, 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 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. Where can this amount be found?  Form

August 17, Deferred Comp Employer Match Where can this amount be found? 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

August 17, 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 Deduction  Form

August 17, Enter biweekly amounts of employee paid health and dental deductions: + Health insurance deduction + Dental insurance deduction = Total Before-Tax Insurance Before-Tax Insurance In the Before-Tax Deductions section on the paystub. Payroll staff: Payroll > Pay Distribution > Paystub, Before-Tax Deductions section. Where can this amount be found?  Form Form

August 17, 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 In the Before-Tax Deductions section on the paystub. Payroll staff: Payroll > Pay Distribution > Paystub, Before-Tax Deductions section. Where can this amount be found?  Form

August 17, 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 Insurance Where can this amount be found? 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

August 17, Taxable mileage is: Reimbursed at a rate greater than the IRS rate Paid with earn codes MIT and MOT Taxable meals are: Meals without overnight lodging Paid with earn codes MEI and MEO Taxable Mileage & Meals In the Earnings section on the paystub. Payroll staff: Payroll > Pay Distribution > Paystub, Earnings section. Where can this amount be found? Enter total dollar amount of taxable mileage and meals. Taxes are withheld at supplemental rates.  Form

August 17, Personal 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 $3.00 CMI = number of miles driven for personal use X IRS mileage rate CRL = amount of annual lease value attributable to personal use In the Earnings section on the paystub. Payroll staff: Payroll > Pay Distribution > Paystub, Earnings section. Where can this amount be found?  Form

August 17, Federal 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

August 17, State 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

August 17, Enter the marital status claimed on the employee’s W-4 form (Employee’s Withholding Allowance Certificate). 1 = single 2 = married Tax 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

August 17, Additional 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

August 17, Additional 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

August 17, Biweekly Federal Tax The amount of federal tax that is withheld. Net Pay Calculator calculates this amount.  Form

August 17, Biweekly State Tax The amount of state tax that is withheld. Net Pay Calculator calculates this amount  Form

August 17, FWT Taxable Gross F ederal w ithholding t ax taxable gross Total amount of biweekly wages and other compensation subject to federal tax withholding Net Pay Calculator calculates this amount.  Form

August 17, SWT Taxable Gross (MN) S tate w ithholding t ax taxable gross (MN) Total amount of biweekly wages and other compensation subject to Minnesota state tax withholding Net Pay Calculator calculates this amount.  Form

August 17, (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

August 17, Retirement % 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

August 17, 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 % 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

August 17, Retirement Gross Wages subject to retirement. Net Pay Calculator calculates this amount.  Form

August 17, Retirement 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

August 17, Retirement 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. Where can this amount be found?  Form

August 17, Supplemental 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. Where can this amount be found?  Form

August 17, Retirement Ded-Employee Amount of retirement deducted from the employee’s pay Net Pay Calculator calculates this amount.  Form

August 17, Retirement-Supp Ded-Employee Amount of supplemental retirement deducted from the employee’s pay Net Pay Calculator calculates this amount.  Form

August 17, Retirement Refunds Used by Statewide Payroll Services only. Do not enter anything in this field.  Form

August 17, Retirement-BB-Employee Used by Statewide Payroll Services only Do not enter anything in this field.  Form

August 17, FICA Gross Amount of wages subject to FICA Net Pay Calculator calculates this amount. An amount appears here if the number “2” was entered in the field 1=MED,2=FICA,3=NONE.  Form

August 17, FICA 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. Where can this information be found? Rarely Used: Most earnings are subject to FICA.  Form

August 17, FICA 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. Where can this information be found? Rarely Used: Necessary only if FICA Gross YTD exceeds the maximum.  Form

August 17, FICA Tax Employee Amount of FICA tax that is deducted. Net Pay Calculator calculates this amount. FICA Gross X 6.2% = FICA Tax  Form

August 17, Medicare Gross Amount of wages subject to Medicare. Net Pay Calculator calculates this amount. An amount appears here if the number “1” or “2” was entered in the field 1=MED,2=FICA,3=NONE.  Form

August 17, Medicare 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. Where can this information be found? Rarely Used: Most earnings are subject to FICA.  Form

August 17, Medicare 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. Where can this information be found? Rarely Used: The portion of annual earnings greater than $200,000 is subject to an additional 0.9% Medicare tax.  Form

August 17, Medicare Tax Employee Amount of Medicare tax that is deducted. Net Pay Calculator calculates this amount. Medicare Gross X 1.45% = Medicare Tax  Form

August 17, Additional 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.

August 17, Total Biweekly Taxes + Biweekly Federal Tax + Biweekly State Tax + FICA Tax Employee + Medicare Tax Employee = Total Biweekly Taxes Net Pay Calculator calculates this amount.  Form

August 17, Total 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 Net Pay Calculator calculates this amount.  Form

August 17, Total 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.

August 17, Net Pay Sum + Biweekly Gross + Converted Leave Gross + Supplemental Gross Less - Total Biweekly Taxes - Total Before-Tax Deductions - Total After-Tax Deductions = Net Pay Net Pay Calculator calculates this amount.  Form Next 

August 17, …..do you need more help? Agency payroll staff: Contact Statewide Payroll Services. Thank you!