About calculation methods

The calculation method tells Sage 100 Contractor how to use the calculation.

For example, if a calculation uses a per hour calculation method, Sage 100 Contractor multiples the number of hours worked by the rate assigned to the calculation.

• 1 - % Gross Pay (unadjusted): Computes a percent of the gross wages, not including adjustments that might add or reduce taxable amounts to the paycheck.

• 2 - % Total Taxable Wages: Computes a percent of the wages subject to Medicare (Taxable wages = gross pay + taxable add-ons – non-taxable deductions).

  You can use this calculation method for employer calculations that are not subject to taxes, and employee deductions that are subject to all taxes and do not use calculation types 2-Add to Gross or 4-Add/Deduct (taxable).

  Do not use calculation method 2-Percent Total Taxable Wages for a deduction that is not subject to all taxes, such as a 401(k).

• 3 - % Gross + Paygroup Benefits: Computes a percent of the gross pay plus paygroup adjustments (Gross + paygroup benefits = gross pay + taxable add-ons from paygroups – non-taxable deductions from paygroups), calculated for each timecard line.

  You can use this calculation only for paygroup benefit packages because Sage 100 Contractor only looks at the taxable add-ons and non-taxable deductions in the paygroup.

  Calculation method 3-Percentage Gross + Paygroup Benefits requires the calculation to have a calculation number larger than the calculation that adds the benefit to the gross wage. Sage 100 Contractor executes each payroll calculation in the order established by the calculation numbers.

• 4 - % Regular Pay (reg hours only): Computes a percent of the regular pay based on regular hours only (including vacation, sick, and holiday hours), but does not include any pay from hours marked as overtime or premium. For example, if an employee works an eight-hour day plus two hours of overtime, Sage 100 Contractor computes the percent based on eight hours of regular pay.

• 5 - % Regular Pay (all hours): Computes a percent of the regular pay based on all hours worked, including overtime and premium hours. For example, if an employee works an eight-hour day plus two hours of overtime, Sage 100 Contractor computes the percent based on ten hours of regular pay.

• 6 - % Disposable Income (net): Computes a percent of the net pay after taxes. If two or more wage attachments apply to the same employee and you use 6-Percent Disposable Income (net) as the means of calculation, you may need to combine the calculations to withhold the correct amount.

• 7 - % Other Calculation: Computes an amount based on the result from another calculation.

  To use this calculation method, you need to select the prior calculation on which to base this calculation. In the Based on list, click the calculation you want to use. The Based on calculation on must have a calculation number smaller than the current payroll calculation number. Sage 100 Contractor executes each payroll calculation in the order established by the calculation numbers.

  Important! If you want to use this calculation method in Paygroup Benefits, note that:

  • The benefit rate from the paygroup (in the 5-3-4 Paygroups window) is used for reporting in 5-1-7-31 and 5-1-7-36 reports.

  • The employee rate (5-2-1 Employees window) is used for calculating payroll.

• 8 - Per Hour (all hours): Multiplies the rate by the number of hours.

• 9 - Per Hour (reg hours only): Multiplies the rate by the number of regular hours (including vacation, sick, and regular hours). This excludes overtime and premium hours.

• 10 - Per Day: Computes an amount based on the number of days worked.

• 11 - Per Pay Period: Computes a flat amount each pay period.

• 12 - Reg/Ovt/Prm (0*, 1*, 1*): Computes overtime and premium wages for add-ons or benefits using overtime and premium wage rates indicated in the employee record. Sage 100 Contractor calculates overtime wages at the rate, and calculates premium wages at the rate.

• 13 - Reg/Ovt/Prm (0*, 1.5*, 2*): Computes overtime and premium wages for add-ons or benefits using overtime and premium wage rates indicated in the employee record. Sage 100 Contractor calculates overtime wages at 1.5 times the rate, and calculates premium wages at 2 times the rate.

• 14 - Reg/Ovt/Prm (1*, 1.5*, 1.5*): Computes regular, overtime, and premium wages using regular, overtime, and premium wage rates indicated in the employee record. Sage 100 Contractor calculates overtime wages at 1.5 times the rate, and calculates premium wages at 1.5 times the rate.

• 15 - Reg/Ovt/Prm(1*, 1.5*, 2*): Computes regular, overtime, and premium wages using regular, overtime, and premium wage rates indicated in the employee record. Sage 100 Contractor calculates overtime wages at 1.5 times the rate, and calculates premium wages at 2 times the rate.

• 16 - Reg/Ovt/Prm (1*, 2*, 2*): Computes regular, overtime, and premium wages using regular, overtime, and premium wage rates indicated in the employee record. Sage 100 Contractor calculates overtime wages at 2 times the rate, and calculates premium wages at 2 times the rate.

• 17 - Tables: Computes taxes using rates from a tax table. Sage 100 Contractor contains the necessary federal and state tax tables, but does not display the rates and maximums.

• 18 - Variable (manual calc: Enables you to enter an amount directly in the payroll record before the final-compute. Sage 100 Contractor does not compute these amounts.

• 19 - Per Hour (worked hours): Multiplies the rate by the number of hours using only regular, overtime, premium, and piece pay hours. Sick, vacation, and holiday hours are excluded.