Calculation method list Calculation methods determine how Payroll calculates amounts for checks. You can select a calculation method when you set up or modify pays, deductions, and fringes. You can use them to customize how Payroll calculates items for a particular employee or union. The Calc method lists commonly used calculations so you don’t have to create a formula to handle routine calculations. You can still select Formula and design your own formula if the preset options don't work for your needs. ▼ General methods Default This calculation method uses the Calc Method selected in the Union Class Setup window (if using unions) or from the Deduction/Pay/Fringe Setup window. Selecting a different calculation method customizes the calculation. Flat amount Use this calculation method if the calculation is a flat amount. Sage calculates these items automatically only for the first check in a pay period. EXAMPLE: An employee's monthly car allowance is a flat amount of $150.00. Select Flat amt in the Calc method box and enter 150.00 in the Amount box Other units Use this calculation method if the calculation is based on other units, such as miles. Unit amounts use the Units column in Enter Time, Change Unposted Time, or Enter Checks to calculate. If you select Other units as the calculation method, you can use a formula to calculate a rate. When you process the check, the rate is multiplied by the number of units. EXAMPLE: An employee receives a travel reimbursement of 35 cents per mile traveled. The employee has driven 150 miles. Select Other units in the Calc method box and enter 0.35 in the Amount box to generate these results: 150 miles X $0.35 = $52.00. Formula Use if none of the preset calculation methods can accommodate the pay, deduction, or fringe requirements. In the Calc method box, select Formula to calculate the pay, deduction, or fringe with your formula. In the Formula box, enter the formula ID. You need fill in the Amount box only if the formula references this field. ▼ Methods based on time worked Regular hrs Regular hours consist of total units entered for pay IDs with a Pay Type of Regular. Use this calculation method when the item is based on the total regular hours. EXAMPLE: An employee worked 40 regular hours and 5 overtime hours for the week. They have a fringe benefit that accumulates $1.25 for each regular hour worked. Select Regular hrs in the Calc method box and enter 1.25 in the Amount box to generate these results: 40 hours X $1.25 = the fringe amount of $50.00. Overtime hrs Overtime hours consist of total units entered for pay IDs with a Pay Type of Overtime. Use this calculation method if the item is based on overtime hours. EXAMPLE: An employee worked 40 regular hours and 5 overtime hours for the week. They have a fringe benefit that accumulates $1.25 for each overtime hour worked. Select Overtime hrs in the Calc method box and enter 1.25 in the Amount box to generate these results: 5 hours X $1.25 = the fringe amount of $6.25. Total hrs Total hours are the sum of the units entered for pay IDs with a Pay Type of Regular or Overtime. Use this calculation method for the items based on total hours. EXAMPLE: An employee worked 40 regular hours and 5 overtime hours for the week. They have a fringe benefit that accumulates $1.25 for each hour worked, regardless of whether the hours worked are regular or overtime. Select Total hrs in the Calc method box and enter 1.25 in the Amount box to generate these results: (40 + 5 hours) X $1.25 = the fringe amount of $56.25. Days worked Payroll determines days worked from the Pay Group Setup window, or if entered during earnings entry, from the Check Information window. Check Information is available in Enter Time, Change Unposted Time, or Enter Checks. Use this calculation method if the pay, deduction, or fringe is based on the number of days worked. Sage calculates the days worked items automatically only for the first check in a pay period. EXAMPLE: An employee is working offsite for 5 days and receives a lodging allowance of $75.00 for each day worked. Select Days worked in the Calc method box and enter 75.00 in the Amount box to generate these results: 5 days X $75.00 = $375.00. Weeks worked Payroll determines weeks worked from the Pay Group Setup window, or if entered during earnings entry, from the Check Information window. Check Information is available in Enter Time, Change Unposted Time, or Enter Checks. Use this calculation method if the pay, deduction, or fringe is based on the number of weeks worked. Sage calculates the weeks worked items automatically only for the first check in a pay period. EXAMPLE: An employee is working offsite for 2 weeks and receives a lodging allowance of $250.00 for each week worked. Select Weeks worked in the Calc method box and enter 250.00 in the Amount box to generate these results: 2 weeks X $250.00 = $500.00. Hrs paid Hours paid accumulate as regular hours + (overtime hours X overtime factor). Use this calculation method if the pay, deduction, or fringe is based on the number of hours paid. EXAMPLE: An employee worked 40 regular hours and 5 overtime hours for the week. The overtime factor is 1.5. A union health benefit is $1.40 for each hour paid. Select Hrs paid in the Calc method box and 1.40 in the Amount box to generate these results: (40 + (5 X 1.5)) X $1.40 = the fringe amount of $66.50. ▼ Methods based on pays Regular pay Regular pay consists of all pay IDs with a Pay Type of Regular. Use this calculation method if the pay, deduction, or fringe is based on regular pay. EXAMPLE: An employee receives $500 regular pay and $112.50 overtime pay. The employee has a union benefit that accumulates 5.0% of regular pay. Select Regular pay in the Calc method box and enter 5.0 in the Percent box to generate these results: $500.00 X 0.05 = the benefit amount of $25.00. Overtime pay Overtime pay consists of all pay IDs with a Pay Type of Overtime. Use this calculation method if the pay, deduction, or fringe is based on overtime pay. EXAMPLE: An employee receives $500 regular pay and $112.50 overtime pay. The employee has a union benefit that accumulates at 4.0% of overtime pay. Select Overtime pay in the Calc method box and enter 4.0 in the Percent box to generate these results: $112.50 X 0.04 = the benefit amount of $4.50. Total pay Total pay consists of total pay entered for pay IDs with a Pay Type of Regular and Overtime. Use this calculation method if the pay, deduction, or fringe is based on total pay. EXAMPLE: An employee receives $500 regular pay and $112.50 overtime pay. The employee has a union benefit that accumulates 4.0% of regular and overtime pay. Select Total pay in the Calc method box and enter 4.0 in the Percent box to generate these results: ($500.00 + $112.50) X 0.04 = the benefit amount of $24.50. Straight pay Straight pay multiplies the total hours worked by the regular rate of pay. Use this calculation method if the pay, deduction, or fringe is based on straight pay. Select the Straight pay box for an Other pay in the Pay Setup window. This will include a Pay Type of Other or Cash fringe in the straight pay calculation. EXAMPLE: For example, an employee worked 40 regular hours and 5 overtime hours for the week with a rate of pay of $15.00. The employee has a workers' compensation fringe benefit that calculates 5.0% on the straight pay portion of earnings. Select Straight pay in the Calc method box and enter 5.0 in the Percent box to generate these results: (40 + 5) X $15.00 = $675.00 basis. $675.00 X 0.05 = the benefit amount of $33.75. Net pay To calculate net pay, Payroll calculates earnings, then subtracts taxes and deductions. This gives a preliminary net pay. Use this calculation method if the pay, deduction, or fringe is based on a percent of net pay. - Pays: Calculates the amount of pay and adds it to the employee's earnings. It recalculates taxes and deductions to derive a final, inclusive net pay.
- Deductions: Calculates the deduction amount. It subtracts the deduction from the employee earnings, then recalculates taxes to derive a final, inclusive net pay.
- Fringes: The fringe amount uses the preliminary net pay amount to calculate.
EXAMPLE: An employee has a wage garnishment that accrues at 15% of net pay. Select Net pay in the Calc method box and enter 15.0 in the Percent box. This results in: Net Pay x 0.15 = pay/deduct/fringe amount. Gross pay Gross pay consists of all pay IDs entered with a Pay Type of Regular, Overtime, and Other. Use this calculation method if the pay, deduction, or fringe is based on gross pay. EXAMPLE: An employee receives $500.00 of regular pay, $112.50 of overtime pay, and $100 of bonus pay (Pay Type is Other). The employee has a 401(k) plan deduction that calculates on 8% of gross pay. Select Gross pay in the Calc method box and enter 8.0 in the Percent box to generate these results: ($500.00 + $112.50 + $100.00) X 0.08 = the deduction amount of $57.00. |