How to use an online payroll calculator

An online payroll calculator is used to calculate the net salary after applying the necessary payroll deductions such as tax and other contributions like pension fund and employment insurance. The paycheck calculator is used for salary calculation, commission calculation, pension calculation as well as verifying pension fund and employment insurance per province.

Information for the calculations

The employer’s name, employee name, pay period frequency, pay rate, date of salary payment, province, gross pay and vacation income are required at the first stage of the calculations. The other information if applicable such as bonus payment or retroactive payment, union dues, taxable benefits like cash or non-cash insurable for employment insurance, alimony or maintenance payments, employee’s contribution to registered retirement saving plan (RRSP) or registered pension plan (RPP), clergy housing benefits is added by completing the ‘tick box’ which is adjacent to the information request.

Information generated by the calculator

The wages calculator will generate the ‘take home’ pay, commission, employee remittance advice, pension fund calculation and/or verified pension and employment insurance contributions depending on the command chosen at the first stage. The employee remittance advice shows both employee and employer contributions towards pension fund and employment insurance. Salary calculation shows information on salary income, taxable income for the pay period, pensionable earnings, insurable earnings, tax deductions such as provincial and federal tax, pension fund and employment insurance deductions. Besides, commission calculation highlight the gross income, commission expenses and other contributions like tax, registered retirement saving plan (RRSP) and registered pension plan (RPP).

Benefits

The paycheck calculator is easy to use and the calculating stages are easy to follow. This service is available anywhere and anytime with an unlimited customer support. Online paycheck is used as a guideline to reveal one’s net salary after all necessary deductions which can be used for domestic budgeting. The paycheck calculating process is simple to learn and a ‘help window’ always pops in for user guide. The payroll software with the necessary payroll programs can easily be downloaded from the Internet. The payroll calculator results will also show the specific federal and provincial tax deductions.

Disdvantages

The payslip calculator can generate in-accurate payroll calculations if one does not have adequate and necessary information beforehand.