Employee's Deductions And Net Pay

Employee's deductions and net pay				15
The excel worksheet comprises of an example of				300
an excel worksheet that will aid in the calculation				30
of the employees net pay after the deductions				18.6
such as taxes, union fees and social security				4.5
funds, the worksheet could help in reducing				53.1
lengthy calculations and it acts as a program that				246.9
makes this calculation easier.				5
For an employer with more than 1000 workers it				LINCOLN
will be very difficult to prepare holdings for federal				18
taxes and the net pay to be given to workers,				20
however the use of an excel worksheet helps in				360
reducing this work burden and the calculation of				36
net pay for more than 1000 workers can be				22.32
done in minutes.				5.4
The columns of the spread sheet include:				63.72
- The employee's number				296.28
- Employee's name				6
- Hours per week				ELIAS
- Hourly pay rate or pay per hour				15
- Total gross pay				24
- Federal tax level				360
- Social security and Medicare withholdings				36
- Union fees				22.32
- Total deductions				5.4
- Disposable income or net pay				63.72
The excel worksheet involves the provision of				296.28
formulas in each cell and then auto fill to the other				7
required cells, however caution must be				SOLOMON
undertaken to avoid errors when multiplying a				16
column with a single cell, however auto filling helps				30
reduce the problem of having to multiply on each				480
row, further the sheet can be used to undertake				101.5
calculation of over 1000 employees.				29.76
The worksheet has a number of 10 employees				7.2
namely James, John, Michael, Alex, Lincoln, Elias,				138.46
Solomon, David, Grace and Carol, all of them are				341.54
married and they work different total of hours				8
per week, they are also paid at different rates				DAVID
and their taxation depends on the level of gross				17
weekly pay, below is a summary of the				26
reductions for all the employees:				442
For Federal holdings if gross wage is less than				44.2
449 dollars the rate is 10%, if it is more than 449				27.404
dollars then the rate is 29.5 + 15% of gross pay,				6.63
however all our employees earn between 0 and				78.234
500 dollars gross weekly wage. The social security				363.77
and Medicare is 6.20% for all the employees and				9
finally the union fee is 1.5% for all the workers.				GRACE
Results:numbernamehours per weekpay per				14
hourgross payfederal taxsocial security and				30
Medicare withholdingsunion duestotal				420
deductionsdisposable income(net pay)				42
1				26.04
JAMES				6.3
20				74.34
20				345.66
400				10
40				CAROL
24.8				25
6				20
70.8				500
329.2				104.5
2				31
JOHN				7.5
24				143
15				357
360				Advantages:
36				- Easy to use
22.32				- Can be used to calculate tax levels for a large
5.4				sample of employees within minutes
63.72				- Self explanatory in that all calculations are well
296.28				defined
3				Disadvantages:
MICHAEL				- It is not easy to multiply or copy the program
22				to a new spread sheet
15				- It will be cumbersome to make such a
330				programming on weekly bases
33				- A single error may lead to wrong impressions of
20.46				tax levels
4.95				Recommendation:
58.41				The excel spread sheet should have an option
271.59				that allows copying the formulas from one spread
4				sheet to another, this will aid in quick duplication of
ALEX				weekly and dairy tax pay.
20

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Employee's Deductions And Net Pay