Calculating your payroll manually using pen, paper and a calculator would be really timely and a headache. Good thing there is Microsoft Excel that you can use for easier computing and organization of your payroll. In MS Excel, you can create and customize formulae for computation according to your needs but for beginners, there are available easy-to-use templates that MS has already provided for you so you won’t have to waste much effort and time in calculating your payroll manually.
Here is how you can do your payroll in Excel:
- Open Microsoft Excel. If you still do not have MS Excel, you can buy and download it online or you can buy an installer CD for Microsoft Office.
- Find a template. For earlier versions of MS Excel, you can just click new and then search for the payroll calculator template by typing “payroll calculator” on the “Search Office.com for templates” text box. However, for newer versions of MS Excel, you can click File and then click New and type “payroll calculator” on the “Search Office.com for templates” text box. Select the Payroll Calculator Template and then click download.
- Input your data on the excel cells on the employee information sheet. Type the name of your employee with his/her corresponding identification number and his/her hourly wage. Also input other data such as the Federal Allowance from the W-4.
- Input the corresponding taxes of each employee. Type tax statuses, state tax percentages, income tax percentages, social security tax percentages, etc. Excel will automatically compute all these tax percentages and the results will appear on the Total Taxes withheld column.
- Input the deductions of each employee. Type the amount of their deductions such as the Insurance Deduction and Other Regular Deductions. Excel will automatically compute all these deductions.
- Input the employee data on the Payroll calculator sheet. Data such as the regular hours worked, vacation hours, sick hours, overtime hours and the overtime rate must be typed on this sheet. Excel will then automatically compute the gross pay of each employee and each net payment including the taxes and the deductions.
- Insert rows. If you have more employees than the available rows in the template, you can insert a row for additional employees. Right click the last row then click Insert. A menu will pop, select Entire Row from the choices and then click Okay. A new row is now inserted. Just change the Employee ID number and then input the data of the employee.
- Individual paystubs. The individual paystubs of each employee will be available on the Individual Paystubs sheet of the Excel. You can print these and let your employees sign as acknowledgment of the payroll.
It is important that you save your payroll calculator document and make sure that no unauthorized person can have access to this. You can also print the payroll for hard copy and documentation. Do not forget to always be careful in typing the data because a single incorrect data may change everything.