Payroll Register in Excel
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The document outlines the payroll process and deductions in Microsoft Excel, emphasizing the importance of maintaining accurate employee records that include earnings, deductions, and net pay. It discusses potential issues with rounding errors in Excel calculations and provides a solution using the ROUND formula to ensure precise results. Additionally, it highlights the composition of a payroll register and how to verify its accuracy.
Payroll Register in Excel
- 2. Taxes are required by law Employees can choose to have other deductions taken out of pay checks ◦ Medical insurance ◦ Life insurance ◦ Union dues ◦ Savings bonds or savings account ◦ Friend of the Court ◦ Garnishment ◦ United Way or other Contributions
- 3. A company maintains a record for each employee that shows total earnings, total deductions, net pay, and accumulated earnings Net pay is the amount the employee “takes home”, the amount a paycheck is written for Accumulated Earnings is the total amount an employee has made year-to-date
- 5. A Payroll Register is a summary record of all employees for a pay period, their amount of total earnings, total deductions, and net pay Each employee is entered individually, but totals for all employees is calculated at the bottom Verifying the Payroll Register is correct Total Earnings – Total Deductions = Total Net Pay
- 7. Payroll Register can have problems in Excel because of rounding Increase/Decrease decimal buttons allows us to change the “look” of a number; it does NOT change the number For example: Excel displays 10.77; number is really 10.76987 When totaling, Excel will use 10.76987 Sometimes causes totals to be off by a few pennies
- 8. Workaround for rounding errors ◦ =round(calculation, number of decimals) ◦ =round(G7*6.2%,2) Whenever calculating with percentages, it is a good idea to use the Round formula