Payroll Spreadsheet Checklist


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Sheet
bulletRead and follow directions in the syllabus carefully.
bulletCheck out the Hints for
bullet VLOOKUP,
bullet IF
bulletAvoid the errors that have been made by past students (don't make the same ones yourself).
bulletRemember to use the MS Excel Help menu and Tutorials
bulletCreate formulae so Excel calculates all columns from G (Overtime Hours) to O (Net pay)
bulletWhen someone works a different number of hours then Overtime hours must automatically adjust (remember cardinal rule of spreadsheets - Never do the math yourself, that includes comparing.)
bulletIf someone moves from NY or NJ, then the sheet should automatically do the proper state tax.
bulletIf they get another kid (dependant), then it more health insurance should automatically be deducted. (hint: that's a named table)
bulletRemember the Total Row for  Overtime hours through Net Pay columns
bulletBe sure to follow the Cardinal Rules for Spreadsheets:
bullet

Never do the math yourself.  Math is add, subtract, multiply, divide, compare and functions).
ALWAYS instruct Excel on how to perform the calculation  (which cells, functions or math operators) to use.

bullet

Never type a value more than once.  Always put changeable values, like interest rates, in cells where they can be seen and changed, and then point to them in the formula.
ALWAYS point to a cell (usually the nearest) that contains the value.  This is critical when the value you intend to use has been calculated by Excel.

bullet

Check your work that the numbers make sense!  Estimate what they should be.

Formatting
bulletStates are ONLY 2 characters NJ, NJ, FL, DC, CA
bullet$ in the first row and last row (total row) ONLY
bulletFormat so the sheet is attractive. Use clipart, shading, bold, italics, underline, varied fonts, sizes...
bulletUse Wrap to put Long Headings like "Overtime Hours" on 2 lines using Alt plus Enter at same time
Overtime
Hours
bulletReduce column widths to Best Fit. (double click in-between the letters on  A B C on top)
bulletSince this is an exchange of money, use pennies for most cells
bulletAll cells in a column should have the same number of decimals.

Formula
bulletUse IF formula when a cell could have different values/formula depending on the value of some other cell.  For payroll, if that employee were paid the same amount every week and the total for the year was over $20,000 then Federal Tax would be due on amount over $20,000.  If the yearly total were less than $20,000 then zero tax would be due.  This requires calculating the yearly income based upon if the weekly pay using an IF .  See example.
bulletUse VLOOKUP function when a cell's value/formula is a variety of different value depending on that some other cell contains. For payroll, Health Insurance is done using a lookup function. 
bulletOvertime pay is paid at time and a half (1.5) - it is this for everyone, no IF needed since zero times anything is zero
bulletRegular pay is based on regular hours only, 40 or fewer, not total hours.
This does NOT need an IF because regular hours are total hours except overtime, net them out. An IF makes the formula unnecessarily complex. Regular hours are total minus Overtime which works no matter if there are OT hours or not (zero).  You cannot just plug a 40 here since few than 40 hours could have been worked and you cannot do the compare yourself and put 40 in some cells and total hours worked in other (see first cardinal rule of spreadsheets)
bulletFederal tax requires annualizing the weekly pay and testing if it exceeds $20,000.  If so the formula is
bulletannualize it (again)
bulletnet out $20,000 to get taxable income
bulletmultiply taxable income by the tax rate to get yearly taxes
bulletand divide by the number of weeks in a year to get this weeks taxes
bullettest that your formula is correct by having
bulletsomeone who makes $400 a week who should pays $3.08
bullet$400 times 52 is yearly income = $20,800
bulletminus- 20,000 for $800 taxable income
bullettimes 20% tax rate is $160 per year taxes
bulletdivided by 52 weeks in a year is $3.07
bullet someone who earns less $400 a weeks who should not pay any tax.
bulletState taxes are done with a table lookup.  The states must be in alphabetical order in the table
bulletsum, Σ, columns "Total Hours" all the way to "Net Pay" as the last row
bulletdo NOT total items that are meaningless to sum, like deductions

Charts
bulletLabel bar chart with along the X axis (payroll it's employees’ names).
Make sure Legend has meaningful names (payroll it's Regular and Overtime Pay.)
bulletShow the label each pie slice and either the a value or percentage (payroll it's employee’s name and amount earned.) That way you can eliminate legend and be clearer and save room.
Explode one slice. (Not all of them like someone dropped the pie!)
bulletUse a stacked bar graph rather than individual bars for each number. 
Typically you would do this only when you had over a dozen bars, but this is a pretend payroll that could have 20 or 30 employees so a stacked bar graph would have half the number of bar (or columns)
bulletMake sure the charts fit below the numbers, but make them large enough to read the label s.

Printing
bullet This is a sheet with many columns.  If you really squeeze things, you can get it to fit in one page but 2 readable pages in landscape mode are fine.
bullet Make sure you have a page heading on the sheet with a title, your name and the date.  Try some interesting fonts.
bulletPrint properly formatted with imbedded charts. 
bulletSwitch to formula view and make sure columns are wide enough to read entire formula. 
bulletAdd Gridlines and Row and Column labels for formula sheet per print hints
bulletPrint non-repetitive formula (Highlight JUST the cells to print, File menu, Print Area Set, Set Print Area)  Print again.

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This page was created by Professor Maureen Greenbaum and was last updated on 03/04/07 .
Page Name: Payroll Spreadsheet Checklist
URL:            
http://faculty.ucc.edu/business-greenbaum/Intro/C100SS_Hpayroll.htm

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