How to Calculate a Pre-Tax Simple Payroll Check?
Performing payroll involves making numerous tax deductions ranging from income tax to Social Security taxes and medicare taxes. Before you can deal with these deductions you must calculate a simple, pre-tax payroll check. This involves calculating the employee's gross wages and making deductions for work-related expenses and voluntary deductions.
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Instructions
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Calculate the employee's gross earnings. For a salaried worker, this will be a flat rate. For an employee who works on an hourly basis you need to multiply the number of hours that she worked by her hourly wage.
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Subtract job-related expenses from the employee's check. These can include uniform expenses, company lodging, meals and any other expenses that are charged to the employee.
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Subtract voluntary deductions that the employee has authorized. These may include health and life insurance premiums, retirement contributions and other investment plans such as company stock-purchasing plans.
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References
- "American Payroll Association Basic Guide to Payroll"; Delores Risteau, et al.; 2003
