Instructions for using the Payroll Calculation form
Purpose of the form - The purpose of this form is to enable employees to see what effect the change in federal withholding tables (effective April 1, 2009) will have on the amount of their federal income tax withheld based upon the employees current Form W-4. The form will also assist employees in determining if a change in Federal Income Tax (FIT) withheld will need to be made to arrive at the desired level of FIT withholding by year end.
Preparing to use the Payroll Calculation form - Before you begin to use the calculation form, you will need to have a print out of your last pay stub. Click on Pay Stub Print Instruction for the printing process. The pay stub will provide you with most of the information requested on the calculation form. You will also have to obtain your FormW-4 information from your payroll department, unless you have kept a current copy of this form.
Accessing the Payroll
Calculation form - To access the calculation form, click on the
Payroll Calculation Form ARRA 2009 forms link
and select the Payroll Calculation form for the proper period located in the
Payroll Forms area. As you
use the form, remember that it is an interactive sheet and can be used on the
web site or copied down to your own hard drive.
If you work with it on the web, any changes you make will be lost when
you close out of the window.
Using the Payroll Calculation form -
· Data should only be entered in the cells on the left side of the page (column C). After entering the data and moving off of the cell just entered, the figures at the right will change accordingly.
· Since the sheet is interactive on the web site, all data should be reset to zero when you first open the sheet. Please check the cells in column C and make sure all cells in sections 4, 5, 7 and 8 are set to 0.00. If data exists, enter the 0.00 into the cell.
Entering data into the sheet -
· Section 1 Exemptions
o Enter the number of exemptions listed on your W-4 form. Adjusting the number will increase or decrease withholdings for FIT and SIT on the pay check. The higher the number of exemptions, the lower amount of tax withheld. If you want to change the number of exemptions, you will need to complete a new form W-4 and submit it to the personnel department of your agency.
· Section 2 Pay Cycle
o Enter the appropriate code for the pay cycle you are being paid from BW for Bi-weekly and M for Monthly.
· Section 3 Marital Status
o Enter S or M depending on your status. If you are married and want to have the maximum taxes withheld (more than available in the married tables) enter S (Single) in the marital status field of section 3 and 0 exemptions in section 1.
· Section 4 Gross Wages
o There are two entries required for this section - Rate and Units
§ Rate enter either your hourly rate or the gross amount of the check.
§ Units enter the number of hours for the pay period if you listed your hourly rate above or a 1 if you entered the gross amount of the check.
· Section 5 Additional FIT
o Enter the amount of additional taxes you have (or want) withheld for FIT. (At any time you can also add additional taxes withheld for SIT, but the April 1, 2009 change only affects FIT.) The current amount of additional taxes withheld is shown on your Form W-4. Entries into this field will change the amount of FIT withheld and affect your end of year liability to the federal government. When entering amounts on this line, you will instantly see the effect on take home pay and FIT amount on the right side of the calculation form.
· Section 6 Retirement
o Since most state employees are subject to Retirement, the default here is set to Y for Yes. If you are not subject to retirement enter an N for No. The default rate for Retirement is 4.8% and is automatically entered on the calculation sheet. If you are not subject to retirement or have a different rate, please adjust the percentage accordingly. Retirement is excluded or tax sheltered from the FIT and SIT calculations.
· Section 7 DCP or Deferred Compensation Plan
o Any contribution to this plan is excludable from taxes as well. If you are participating in the program, enter the amount of your contribution for each pay period here. This amount can be found on your pay stub.
· Section 8 Deductions
o There are two categories of deductions those included in the tax sheltered program (meaning those expenses deducted directly from your wages before taxes are calculated) and those that are not tax sheltered.
§ Sheltered Deductions include Health premiums, Dental premiums, Vision premiums, Dependant Care Contributions (Dep Cr), Medical Reimbursement(Med Rm) and Parking.
· Enter amounts that you are paying for each deduction on the applicable line in this section.
§ Non-sheltered Deductions all remaining deductions from your pay stub (such as life insurance, credit unions, etc.) should be entered in the lines provided at the bottom of the sheet. You can enter the description of the deduction if you want for clarification but it is not necessary.
Once all of the entries have been made, the sheet will display totals for each of the sections as entered. Adjustments to sections 1, 3, and 5 will have effects on the amount of taxes withheld and on the net pay indicated at the right side of the page. Please note the change in your net pay caused by the change in FIT withholding by comparing this calculation to your previous pay stub. If your total FIT withholding for the year (after this change) will not be where you want it to be, you may need to change the entries in Section 1 and 3 until you reach the desired level of withholding to manage your yearend tax liability. Remember if you make changes in Sections 1 or 3, you must file a new Form W-4 with your agency payroll department.