Net-To-Gross Earnings Elements

Gross-ups are required when you want to pay a payee a specific net amount. Starting from the net amount, the system determines the gross amount to process so that after tax deductions have been made, the required net amount remains.

As part of this feature, Global Payroll for Mexico provides two earnings elements:

• PIRAMIDADO

• EXC PIRAMID

PIRAMIDADO is used for paying the net amount. The PIRAMIDADO earning contributes to the PIRAMIDADOS accumulator, which is the element used in formulas to arrive at the required net.

You enter the PIRAMIDADO earnings amount using positive input or with the Earning/Deduction Assignment page. The system calculates the amount by which it must gross-up earnings to have the required net after deducting taxes. It then assigns that amount, discounting the PIRAMIDADOS accumulator, to the EXC PIRAMID earning. The two earnings make up the gross pay. The PIRAMIDADO earnings element is assigned to the PIRAMID PERC/DED section of the NOMINA process list before the gross-to-net sub-process begins. This is where the EXC PIRAMID earnings element is calculated.

To summarize:

• PIRAMIDADO + EXC PIRAMID = Gross Pay

• PIRAMIDADO = Net Pay

• EXC PIRAMID = Additional amount needed to reach net pay