How to Create a Paycheck for a Salaried Employee Paid 9 Months a Year
Question: One school pay employees with salary rate. But one employee is paid for 9 months a year. Can ezPaycheck handle it?
Answer: Yes, you can handle these special paychecks with ezPaycheck payroll software. However, you need to
- figure out the total federal tax and state tax for one year
- enter the federal tax and state tax for each paycheck in employee profile.
(You do not need to worry about Social security tax, medicare tax.)
You can find the steps below
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For example: Ms. Anna Smith's salary rate is $45,000/year. She is single with no child. She will get two paychecks each month and total 18 paychecks a year. The gross pay for each paycheck is $2500.
Step 1: Set up Company Pay Period
Click the left menu "Company Settings" and click the sub menu "company" to view company setup. You need to choose "semi-monthly" as the current Pay Period.
Step 2: Find the total federal tax and state tax for a year
2.1 Set up Anna as a regular employee to be paid for 12 months.
You can click the ezPaycheck left menu "Employees" then "Add Employee" then add a new employee. Or you can edit an employee profile by clicking left menu "employee List".
2.1.1 When you add/edit employee profile, please make sure you check the option "Salary Employee" and enter $45,000 there.
2.1.2 Set up the tax option
2.1.3 Save the employee profile
2.2 Add a new check without saving
You will see the federal tax $235.52 and state tax 82.06 there for each paychecks.
2.3 Figure out the federal tax and state tax for one year
As a regular employee, she will get 24 paychecks each year for semi-monthly period.
Federal tax for a year: $235.52*24=$5652.48
State tax for a year: $82.06*24=$1969.44
Step 3: Manually Set up Federal and State Tax Options for 9 months pay
If this employee is paid for 9 months with total 18 paychecks, for each paycheck
federal tax should be: $5652.48/18=$314.03
state tax should be: $1969.44/18=$109.4
Edit employee profile again by clicking the ezPaycheck left menu "Employees".
- To generate a gross pay with $2500 for each paycheck, we enter the $60000 (=$2500*24) as her salary
- Change the "number of allowance" for federal and state to 99 to disable tax calculation function.
- Enter federal extra withhold as $314.03. Enter state extra withhold as $109.4.
- Save changes.
Step 4: Generate New Check
You will see all the tax information on the paystubs.
