Selecting Processing Options on the Paysheet

With gross-ups, you have a number of processing options with regard to taxes and deductions:

  • You can use any earnings code that you need.

    It can be Regular, Bonus, Gifts, or any special earnings code that you've set up.

  • You can select any tax method.

    The default tax method is usually annualized. (The earnings code itself may determine the tax method.) If you select either Annualized or Cumulative, the system uses the employee's federal and state tax status and number of exemptions.

    For the U.S., if you select Supplemental or Special Supplemental, the system ignores the employee's filing status and uses the supplemental rates in the Federal/State Tax tables.

    For Canada, the recommended tax methods to use would be Annualized or Bonus.

  • You can specify the exact tax period for the gross-up.

  • The system takes deductions automatically, unless you override them on the One-Time Deductions page.

    These deductions will reduce the net pay.

  • The system may not be able to calculate additional tax amounts or percents.

    When calculating gross-ups, the calculation program may go through several iterations to arrive at the requested net. If, after a number of attempts, the gross-up cannot be calculated, you receive an error message. To correct this situation, you should clear the additional tax amounts or percents on the Employee Tax Data pages.

Note:

You can not override a tax amount using the Paysheet/Payline One-Time Taxes override pages. You can, however, stop a particular tax from being applied.

Example 1: Paysheet for a Net Pay Gross-Up

Access the By Paysheet - Paysheet page.

  1. Select Gross-Up.

  2. Use an earnings code that has Add to Gross Pay selected on the Earnings Code - Taxes page.

  3. Enter the amount to be grossed up.

  4. To enter the tax periods, pay frequency, and tax method that you want to use, select Additional Data.

    If the tax method desired is already defined on the earnings code, it is not necessary to enter it in the Additional Data page.

  5. If you're ready to pay the employee, select OK to Pay.

Note:

(CAN) The gross-up process for Canada considers only legislated deductions (both employee and employer contributions) when determining gross pay. Nonstatutory deductions (both employee and employer contributions) are deducted from the desired net pay unless deductions taken is set to None.

Example 2: Paysheet for a Zero Net Gross-Up

Access the By Paysheet - Paysheet page.

  1. Select Gross-Up.

  2. Use an earnings code that does not have Add to Gross Pay selected on the Earnings Code - Taxes page.

  3. Enter the amount to be grossed up.

  4. Select Addl Data to display a page where you can select the appropriate tax method.

  5. If you're ready to pay the employee, select OK to Pay.

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