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 Pay raises Special payments ID: 673849
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Net Pay CalculatorPowerPoint Presentation
1/13/2020
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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:
Pay raises
Special payments
Achievement awards
Deferred compensationDependent care deferralsFederal and/or state filing status and additional amounts.
Net Pay Calculator includes tax tables for Minnesota only. Residents of other states may use the calculator, but the state tax calculated will be Minnesota tax.
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Where is Net Pay Calculator?
Access the Net Pay Calculator on the Minnesota Management & Budget Web site.
The Web address is:
https://mn.gov/mmb/accounting/payroll/calculators/
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Recommended use of Net Pay Calculator
Open the Net Pay Calculator Excel file and this Net Pay Calculator PowerPoint Presentation. This PowerPoint file may also be reviewed slide-by-slide, reading each description of what to enter in the Net Pay Calculator fields.4Slide5
What the colors mean
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For best results
Fill in actual amounts from a current paystub.Verify that taxes, retirement, and net pay are identical to the current paystub. Go to step 3 only when all amounts match.Change something, such as the amount of compensation.Review the effect of the change on taxes and net pay.Using these steps ensures the most accurate what if results.6Slide7
Net Pay Calculator
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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.
Where can this amount be found?
In the earnings section on the paystub.
Payroll staff: Payroll>
PayDistribution
>Paystub, Earnings section.8Slide9
Converted Leave Gross
Enter the TOTAL dollar amount of leave to be converted to deferred compensation. Total hours converted X Employee’s rate of pay.
Where can this amount be found?
In the earnings section on the paystub.
Payroll staff: Payroll>Pay Distribution>Paystub, Earnings section.
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Supplemental Gross
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. The supplemental rate for federal is 22% and 6.25% for the state of Minnesota.
Is a particular earnings type supplemental?
Payroll staff can look in two places in SEMA4:
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.
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:
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Deferred Compensation
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.
Where can this amount be found?
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.
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Deferred Comp Employer Match
Enter the state’s biweekly contribution to deferred compensation and/or tax-sheltered annuity.Bargaining agreements and compensation plans indicate the maximum match amounts.
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.
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Converted Leave Deduction
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.13Slide14
Before-Tax Insurance
Enter biweekly amounts of employee paid health and dental deductions:
Where can this amount be found?
In the Before-Tax Deductions section on the paystub.
Payroll staff: Payroll > Pay Distribution> Paystub, Before-Tax Deductions section.
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Depend-MedExp/Park/Bus/Van/HCSP/HSA
Enter biweekly total of other before-tax deductions:
Where can this amount be found?
In the Before-Tax Deductions section on the paystub.
Payroll staff: Payroll > Pay Distribution> Paystub, Before-Tax Deductions section.
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Taxable Insurance
Enter the taxable life insurance premium amount paid by the employer for coverage greater than $50,000.This amount increases the taxable gross wages.
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*.
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Taxable Mileage & Meals
Enter total dollar amount of taxable mileage and meals.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.
Where can this amount be found?
In the Earnings section on the paystub.
Payroll staff: Payroll > Pay Distribution> Paystub, Earnings section.
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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.
Where can this amount be found?
In the Earnings section on the paystub.
Payroll staff: Payroll > Pay Distribution> Paystub, Earnings section.
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Federal Filing Status 1=S, 2=M, 3=H-o-H
Enter the federal filing status claimed on the employee’s W-4 form. 1 = Single. 2 = Married. 3 = Head of Household.
Where can this status be found?
Payroll staff: Payroll > Tax Data > Update Employee Tax Data, Federal Form W-4 Version 2020 or later radio button selection, Federal Withholding Elements section.
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Multiple Jobs/Spouse Works (step2) Y/N
Enter Y or N based on information from step 2 on the employee’s federal Form W-4. Y = More than one job is held or married filing jointly and spouse also works. N = Employee has not entered anything for step 2 on the federal Form W-4.
Where can this information be found?
Payroll staff: Payroll > Tax Data > Update Employee Tax Data, Federal Form W-4 Version 2020 or later radio button selection, Federal Withholding Elements section.
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Claim Dependents (step 3)
Enter the dollar amount indicated on step 3 of the employee’s W-4 form.
Where can this
information be found?
Payroll staff: Payroll > Tax Data > Update Employee Tax Data, Federal Form W-4 Version 2020 or later radio button selection, Federal Withholding Elements section.
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Additional Income (step 4a)
Enter the Other Income amount listed on line 4(a) of step 4 on the employee’s W-4 form.This may include interest, dividends, and retirement income.
Where can this information be found?
Payroll staff: Payroll > Tax Data > Update Employee Tax Data, Federal Form W-4 Version 2020 or later radio button selection, Federal Withholding Elements section.
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Additional Deductions (step 4b)
Enter the Deductions amount listed on line 4(b) of step 4 on the employee’s W-4 form.
Where can this information be found?
Payroll staff: Payroll > Tax Data > Update Employee Tax Data, Federal Form W-4 Version 2020 or later radio button selection, Federal Withholding Elements section.
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Additional Federal Tax (step 4c)
Enter the Extra withholding amount listed on line 4(c) of step 4 on the employee’s W-4 form.
Where can this information be found?
In the Federal and State W-4 Information section under
Addl
Amount
on the paystub.Payroll staff: Payroll > Tax Data > Update Employee Tax Data, Federal Form W-4 Version 2020 or later radio button selection, Federal Withholding Elements section.24Slide25
State Filing Status 1=Single, 2=Married
Enter the state filing status claimed on the employee’s W-4/W-4MN form.1 = Single.2 = Married.
Where can this status be found?
In the State W-4 Information section on the paystub.
Payroll staff: Payroll > Pay Distribution> Paystub, State W-4 Information section.
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State Allowances
Enter the number of state allowances claimed on the employee’s W-4/W-4MN form.This total can be found in Section 1, line F, of the employee’s W-4MN form.
Where can this information be found?
In the State W-4 Information section on the paystub.
Payroll staff: Payroll > Pay Distribution> Paystub, State W-4 Information section.
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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.This amount is any additional tax the employee would like to withhold for each pay period. This total can be found in Section 1, line F, of the employee’s W-4MN form.
Where can this information be found?
In the State W-4 Information section on the paystub.
Payroll staff: Payroll > Pay Distribution> Paystub, State W-4 Information section.
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Biweekly Federal Tax
The amount of federal tax that is withheld.Net Pay Calculator calculates this amount.28Slide29
Biweekly State Tax
The amount of state tax that is withheld.Net Pay Calculator calculates this amount.29Slide30
FWT Taxable Gross
Federal withholding tax taxable gross.Total amount of biweekly wages and other compensation subject to federal tax withholding.Net Pay Calculator calculates this amount.30Slide31
SWT Taxable Gross (MN)
State withholding tax taxable gross (MN).Total amount of biweekly wages and other compensation subject to Minnesota state tax withholding.Net Pay Calculator calculates this amount.31Slide32
(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.
Where can this status be found?
In the Taxes section on 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”.
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Retirement % Employee
Enter the percentage that is used to calculate the retirement deduction.
Where can this percentage be found?
Payroll/HR staff:
Employee’s retirement plan: Payroll > Deductions > Retirement Plans. Note the Benefit Plan, such as AA or AB.
Percentage for the Benefit Plan: Set Up HRMS > Payroll Setup > Deduction > Retirement Plan Table. Note the Employee Contribution Percent.
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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?
Payroll/HR staff:
Set Up HRMS > Payroll Setup > Deduction > Savings Plan Table.
Type select Plan Type 4M and a Benefit Plan.
See the Before-Tax percentage on the Employee Limit on Investments page.34Slide35
Retirement Gross
Wages subject to retirement.Net Pay Calculator calculates this amount.35Slide36
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.
Where can this information be found?
Payroll staff:
Set Up HRMS > Payroll Setup > Earnings Table, Special Process page.
Earnings are subject to retirement if Accumulator Code = RET and Effect on Special Balance = A.
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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.
Where can this amount be found?
Payroll staff:
Same amount that was entered in the Retirement Gross Adj. Regular field.
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Supplemental Retire Gross
Enter the amount of wages subject to supplemental retirement.Generally, only employees who have teachers retirement deductions have supplemental retirement.
Where can this amount be found?
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.38Slide39
Retirement Ded-Employee
Amount of retirement deducted from the employee’s pay.Net Pay Calculator calculates this amount.39Slide40
Retirement-Supp Ded-Employee
Amount of supplemental retirement deducted from the employee’s pay.Net Pay Calculator calculates this amount.
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Retirement Refunds
Used by Statewide Payroll Service Only.
Do not enter anything in this field.
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Retirement-BB-Employee
Used by Statewide Payroll Service Only.
Do not enter anything in this field.
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FICA 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.Net Pay Calculator calculates this amount.
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FICA Gross Adjustment
Enter an adjustment amount to reduce FICA gross.Do this only if the earnings are not subject to FICA.
Where can this information be found?
Payroll staff:
Set Up HRMS > Payroll Setup > Earnings Table, Taxes page.
Subject to FICA
box is checked if earnings are subject to FICA.44Slide45
FICA Gross YTD
Enter the FICA gross year-to-date amount from the previous paystub.
Where can this information be found?
In the Gross to Net Information section on the paystub. Under FICA Gross Column, use the YTD amount.
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FICA Tax Employee
Amount of FICA tax that is deducted.Net Pay Calculator calculates this amount.FICA Gross X 6.2% = FICA Tax.
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Medicare 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.Net Pay Calculator calculates this amount.
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Medicare Gross Adjust.
Enter an adjustment amount to reduce the Medicare gross.Necessary only if the earnings are not subject to FICA.
Where can this information be found?
Payroll staff:
Set Up HRMS > Payroll Setup > Earnings Table, Taxes page.
Subject to FICA
box is checked if earnings are subject to Medicare.48Slide49
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.
Where can this information be found?
In the Gross to Net Information section on the paystub. Under the Medicare Gross Column, use the YTD amount.
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Medicare Tax Employee
Amount of Medicare tax that is deducted.Net Pay Calculator calculates this amount.Medicare Gross X 1.45% = Medicare Tax.
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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:
Medicare Gross + Medicare YTD =
Total Medicare.
Total Medicare
- $200,000 = Amount taxed at additional rate.Amount taxed at additional rate X 0.9% = Additional Medicare Tax.
Reminder: Medicare Gross is from the current paystub, and Medicare YTD is from the previous paystub.51Slide52
Total Biweekly Taxes
Net Pay Calculator calculates this amount.
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Total Before Tax Deductions
Net Pay Calculator calculates this amount.
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Total After-Tax Deductions
Enter biweekly total of other 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.
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Net Pay
Net Pay Calculator calculates this amount.
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For more help…..
Agency payroll staff:Contact Statewide Payroll Services.Thank you!
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