Fundamentals of Payroll Calculations: Taxable Gross, Regular Rate of Pay and State Differences in Taxable Calculations

OVERVIEW

In this webinar, attendees will learn the difference between gross pay and taxable pay and regular pay, all of which may be different numbers! This can prepare the payroll team to respond to questions from employees who don’t understand their paychecks. We’ll discuss these questions:

• Do you know if any of your benefit plans are pre-tax?
• If you are in multiple states, are you aware of how each state regards Section 125 or 401k plans?
• What about an employer match for your 401k or 403b plan? Do your benefits include life insurance, and are you aware of how this may affect an employee’s taxable income?
• Do you understand how to calculate taxable wages and what is also not subject to withholding?
• If your employees are paid hourly, do you know how to calculate hourly rate from salary and if they receive the same hourly pay for all jobs, or are there shift differentials, multiple rates or other additions and changes to the employee’s base rate?

The webinar will discuss methods to ensure that all possibilities are included when calculating pay. If you use a vendor service or SAAS to process your payroll, we’ll also discuss how to verify that the vendor has encompassed all your variations in their calculations. It’s always better to be safe than sorry, so ensure that you can verify each employee’s pay-to-gross calculation and know how to calculate wages.

WHY SHOULD YOU ATTEND

Ploughing through the many rules regarding taxable, non-taxable, and pre-tax deductions and earnings is challenging. We’ll help you calculate base to gross wages for multiple scenarios. This webinar will help you respond to the employee who can’t understand why his/her rate is $1,000 per pay period and the pay stub says, “Taxable Gross=$920.00”.

• Do you pay hourly employees with separate hourly rates for different jobs?
• Do you pay employees in a state that allows pre-tax deductions?
• Or are you in a state that doesn’t allow pre-tax deductions?

This webinar can help you always pay these employees correctly. Even if you use a payroll vendor, always know how to calculate net pay from gross pay and how to calculate wages, in order to verify calculations are correct.

AREAS COVERED

• Taxable vs salary/hours
• Blended rates
• RROP (Regular Rate of Pay) calculation
• Exclusions from taxable
• State differences in taxable calculations
• Additions to and subtractions from rate
• Taxable items not subject to withholding

LEARNING OBJECTIVES

Attendees will learn the difference between gross pay, taxable wages and also determine what is taxable but not subject to withholding. Getting to gross is the first step; getting to taxable gross must follow. Attendees will also learn how to calculate wages for hourly paid employees.

WHO WILL BENEFIT

• Payroll Associate and Supervisors
• Anyone who has responsibility for payroll customer service
• Any payroll team that pays both hourly and salary paid employees
• Benefits Associates
• Payroll Consultants
• Payroll Service Providers
• Public Accountants
• Internal Auditors
• Tax Compliance Officers
• Enrolled Agents
• Employee Benefits Administrators
• Officers and Managers with Payroll or Tax Compliance Oversight
• Company/Business Owners
• Managers/Supervisors
• Public Agency Managers
• Audit and Compliance Personnel /Risk Managers