Let us start by calculating the sum of the total hours that all employees worked. Step #9: Calculate the Sum of Payroll Parametersįinally, let’s calculate the sum of all the important parameters of this payroll dataset. Drag the cell downwards to apply the formula to the rest of the cells.The formula calculates the net pay and displays 2775 in Cell I2, as shown below. Select “Cell I2” and enter the above formula.Net Pay = Gross Pay – (Income tax + Other Deductibles) of hours worked by an employee in column C, and so on. The above data in Excel will look like this:Īfter creating columns, enter the necessary details in the appropriate columns like the employee’s name in column A, the total no. The amount you have to pay the employee (before deductions)ĭeductibles other than income tax like TDS, EPF, PT, etc. Total hours the employee worked overtime in a month or a particular pay period. Pay an employee earns for working beyond the regular working hours. Total hours the employee worked in a month or a particular pay period. Total money an employee earns for one hour of work. Enter the column names in the following hierarchy: Sr. Next, add some columns in the sheet to add data like employee name, pay/hour, total hours worked, etc., for the payroll calculation. Save the file in a preferred location so you can easily access the file whenever you need. Note: We have included screenshots of Excel for each step, making it simple for you to follow along with the process.
