If you have employees earning more than that, you need to stop withholding the 6.2% tax once their YTD earnings exceed that amount.įor example, if your employee meets the $160,200 earnings threshold for Social Security in April, delete all the formulas under “Social Security Tax” (column N) in payroll tabs May through December for the employee. Keep in mind that Social Security maxes out if an employee earns $160,200 (in 2023) in wages before the end of the year. These Federal Insurance Contributions Act (FICA) rates are predetermined by the IRS. If you need to add more columns for deductions in the “Set Up” tab, follow the directions above for adding columns.ĭon’t change the Social Security and Medicare tax rates in columns G and H, respectively. There’s only one “Other Deductions” column in the 13 payroll tabs, and the data that reflects here is the sum of columns N and O in the “Set Up Employee Data” tab. Note that we created the “Other Deduction” columns to be easily personalized, so you don’t have to change any other tabs to match. To help, we added two columns (columns N and O) in the “Set Up Employee” tab and labeled them “Other Deduction.” Just double-click on the description and overwrite it with a label that more appropriately reflects your needs. Aside from cutting down on errors, this will save you time from having to change multiple tabs. When adding and deleting columns, consider whether or not you can simply change some of the existing column labels in the payroll Excel template. If not, you’ll receive error messages-and your formulas won’t work.Ĭheck how the cells with formulas automatically calculate totals in the monthly payroll tabs once you enter data in columns A through I. If you delete a column from one of the payroll tabs, including the “Year-to-Date Payroll” and the “Set Up” tabs, then you must delete it from the others.įor example, if you delete the “Social Security Tax Rate” in column G of the “Set Up Employee Data” tab, you need to remove the “Social Security Tax” column (column N) in all the 13 payroll tabs. ![]() To delete columns, highlight the column you want to remove, right-click your mouse, and then select “Delete.” The rules are the same if you delete a column from the “Set Up Employee Data” tab. For the “Year-to-Date Payroll” tab, which contains the summary of the 12 months, you also need to add any new columns so that it correctly reflects details from the monthly payroll tabs. If you add a “Local NYC Tax” column in column O on the “January Payroll” tab, you must add it in the same place on other month tabs. When adding new columns to the month tabs, you must be consistent. Go to all the month tabs (from “January Payroll” to “December Payroll”), including the “Year-to-Date Payroll” tab, and enter a new column between columns N and Q (the tax columns). Right-click your mouse and then select “Insert.” Enter a header (in row 3) for your new column (for example, “Local NYC Tax”) and input the rates for applicable employees. To add a column, choose the column letter (e.g., G, H, or I) you want your new column to come before. This is where you should always start when making changes because all of the remaining payroll tabs pull their source data from here. You can do this by adding the required information in the “Set Up Employee Data” tab. For example, if your business is located in a place that charges local income tax (like New York City), you need to reflect that in the payroll Excel template. You may need to add or delete columns to meet the needs of your small business.
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