How to Use Microsoft Excel for Payroll

How to Use Microsoft Excel for Payroll
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Excel, one of the programs in the Microsoft Office suite, is widely used by individuals and companies to create spreadsheets, charts and graphs. No matter what type of business you're in, it's important to keep careful track of your payroll information, and Excel is a useful program for this type of organization. Microsoft offers a free, downloadable payroll template for those with Excel 2003 or later versions. The template simplifies the process of entering your payroll information and performing calculations.

Navigate to the Microsoft Office Payroll Calculator template page (see Resources) and click "Download," then "Accept." Excel will automatically open to the template when the download is complete.

Fill out the columns with the information according to the headings above each column. The date you enter will include employee names and IDs, hourly wages, state tax percentage, insurance deductions and other relevant tax deduction information. As you enter the data, Excel will automatically calculate the figures in the "Total Taxes Withheld" and "Total Regular Deductions" fields.

Click "Payroll Calculator," which is near the bottom of the spreadsheet. Enter the requested information about the employees' hours, including overtime, and the calculator will provide you with the total net pay for each employee.