Payroll Exercises in Excel

Exercise 01 Find Gross Pay:

Date of Paid Time Nontaxable
Payment Employee State Regular Off Overtime Income
30-Nov-22 Rachel Michigan 152 6 $105
30-Nov-22 Ross Michigan 152 9 $170
30-Nov-22 Joey Colorado 144 10 $30
30-Nov-22 Chandler Indiana 140 5 $30
30-Nov-22 Monica Michigan 152 12 $250
30-Nov-22 Phoebe Illinois 141 $30
1-Dec-22 Ben Illinois 127 $30
1-Dec-22 Adam Indiana 99 8 $30
1-Dec-22 Rowan Colorado 124 $30
1-Dec-22 Ellie Illinois 141 4 $30
1-Dec-22 Britt Michigan 144 $30
1-Dec-22 Alan Illinois 152 5 $100
1-Dec-22 Hamish Michigan 121 10 $30
1-Dec-22 Byron Colorado 120 $30
1-Dec-22 Bettjeman Utah 87 10 $30
2-Dec-22 Harwood Colorado 138 $30
2-Dec-22 Clark Utah 101 8 $30
2-Dec-22 Morrison Indiana 120 $30
2-Dec-22 Parkinson Utah 85 6 $30
2-Dec-22 Coll Colorado 140 $30

Exercise 02 Calculate Tax Deduction Amount:

Date of Paid Time Nontaxable
Payment Employee State Regular Off Overtime Income
30-Nov-22 Rachel Michigan 152 6 $105
30-Nov-22 Ross Michigan 152 9 $170
30-Nov-22 Joey Colorado 144 10 $30
30-Nov-22 Chandler Indiana 140 5 $30
 30-Nov-22 Monica Michigan 152 12 $250
30-Nov-22 Phoebe Illinois 141 $30
1-Dec-22 Ben Illinois 127 $30
1-Dec-22 Adam Indiana 99 8 $30
1-Dec-22 Rowan Colorado 124 $30
1-Dec-22 Ellie Illinois 141 4 $30
1-Dec-22 Britt Michigan 144 $30
1-Dec-22 Alan Illinois 152 5 $100
1-Dec-22 Hamish Michigan 121 10 $30
1-Dec-22 Byron Colorado 120 $30
1-Dec-22 Bettjeman Utah 87 10 $30
2-Dec-22 Harwood Colorado 138 $30
2-Dec-22 Clark Utah 101 8 $30
2-Dec-22 Morrison Indiana 120 $30
2-Dec-22 Parkinson Utah 85 6 $30
2-Dec-22 Coll Colorado 140 $30

Exercise 03 Find Net Pay:

Date of Paid Time Nontaxable
Payment Employee State Regular Off Overtime Income
30-Nov-22 Rachel Michigan 152 6 $105
30-Nov-22 Ross Michigan 152 9 $170
30-Nov-22 Joey Colorado 144 10 $30
30-Nov-22 Chandler Indiana 140 5 $30
30-Nov-22 Monica Michigan 152 12 $250
30-Nov-22 Phoebe Illinois 141 $30
1-Dec-22 Ben Illinois 127 $30
1-Dec-22 Adam Indiana 99 8 $30
1-Dec-22 Rowan Colorado 124 $30
1-Dec-22 Ellie Illinois 141 4 $30
1-Dec-22 Britt Michigan 144 $30
1-Dec-22 Alan Illinois 152 5 $100
1-Dec-22 Hamish Michigan 121 10 $30
1-Dec-22 Byron Colorado 120 $30
 1-Dec-22 Bettjeman Utah 87 10 $30
2-Dec-22 Harwood Colorado 138 $30
2-Dec-22 Clark Utah 101 8 $30
2-Dec-22 Morrison Indiana 120 $30
2-Dec-22 Parkinson Utah 85 6 $30
2-Dec-22 Coll Colorado 140 $30

Exercise 04 Calculate Working Hours:

Employee Name : Ross Johnson Month: December, 2022

Time
Late Entry Overtime
Date Enter Time Exit Time Worked (Hour) (Hour)
(Hour)
1-Dec-22 8:20 AM 5:15 PM
2-Dec-22 8:00 AM 5:25 PM
5-Dec-22 9:10 AM 5:00 PM
6-Dec-22 9:15 AM 5:30 PM
7-Dec-22 9:20 AM 6:10 PM
8-Dec-22 9:30 AM 5:45 PM
9-Dec-22 10:00 AM 5:20 PM
12-Dec-22 9:00 AM 6:30 PM
13-Dec-22 8:45 AM 5:15 PM Exercise 04 Ca
called “Ross Jo
14-Dec-22 10:30 AM 6:45 PM worked, late e
15-Dec-22 8:00 AM 4:00 PM
16-Dec-22 10:00 AM 5:11 PM
19-Dec-22 8:55 AM 4:32 PM
20-Dec-22 9:42 AM 5:22 PM
21-Dec-22 10:00 AM 6:25 PM
22-Dec-22 9:55 AM 5:49 PM
23-Dec-22 8:42 AM 4:52 PM
27-Dec-22 8:45 AM 5:49 PM
28-Dec-22 9:25 AM 6:02 PM
29-Dec-22 10:03 AM 6:05 PM
 30-Dec-22 11:05 AM 5:55 PM

Exercise 05 Calculate Monthly Pay for an Employee:

Employee Name : Ross Month: December,
Johnson 2022
Per Hour Pay $15 Late Fine $5
Overtime Pay $23

Entering Exiting Time Late Entry Overtime

Date Time Time Worked (Hour) (Hour) Daily Pay
(Hour)
1-Dec-22 8:20 AM 5:15 PM 8.92 0.00 0.92
2-Dec-22 8:00 AM 5:25 PM 9.42 0.00 1.42
5-Dec-22 9:10 AM 5:00 PM 7.83 0.00 0.00
6-Dec-22 9:15 AM 5:30 PM 8.25 0.00 0.25
7-Dec-22 9:20 AM 6:10 PM 8.83 0.00 0.83
8-Dec-22 9:30 AM 5:45 PM 8.25 0.00 0.25
9-Dec-22 10:00 AM 5:20 PM 7.33 0.00 0.00
12-Dec-22 9:00 AM 6:30 PM 9.50 0.00 1.50
13-Dec-22 8:45 AM 5:15 PM 8.50 0.00 0.50
14-Dec-22 10:30 AM 6:45 PM 8.25 0.50 0.25
15-Dec-22 8:00 AM 4:00 PM 8.00 0.00 0.00
16-Dec-22 10:00 AM 5:11 PM 7.18 0.00 0.00
19-Dec-22 8:55 AM 4:32 PM 7.62 0.00 0.00
20-Dec-22 9:42 AM 5:22 PM 7.67 0.00 0.00
21-Dec-22 10:00 AM 6:25 PM 8.42 0.00 0.42
22-Dec-22 9:55 AM 5:49 PM 7.90 0.00 0.00
23-Dec-22 8:42 AM 4:52 PM 8.17 0.00 0.17
27-Dec-22 8:45 AM 5:49 PM 9.07 0.00 1.07
28-Dec-22 9:25 AM 6:02 PM 8.62 0.00 0.62
29-Dec-22 10:03 AM 6:05 PM 8.03 0.05 0.03
30-Dec-22 11:05 AM 5:55 PM 6.83 1.08 0.00
Total
Gross
Pay

Exercise 01 Find Gross Pay: Working hours for twenty employees are given.
Your task is to calculate the gross pay. The hourly pay is provided in the
“Reference table” sheet. Additionally, the overtime pay is 1.25 times of the
regular pay and the payment for the paid time off is the same as the regular
pay.
Solution: You will need to use the VLOOKUP function to find the relevant pay
rates. The hourly pay is different for many employees.

Gross Tax
Pay Deductions
$2,817
$3,272
$1,570
$2,205
$3,924
$2,145
$1,300
Exercise 02 Calculate Tax Deduction Amount: The employees work in five di
$1,635 states. The state tax rate is different for each. Use the tax rates from the “Ref
$1,890 table” sheet to find the tax deduction amount in this exercise.
$2,205
$2,046
$2,790
$1,733
$1,830
$1,485
$1,962
$1,665
$1,830
$1,395
$2,130

Gross Tax Benefits & Other Total

Pay Deductions Deductions Deductions Net Pay
$2,817 $463.67
$3,272 $530.40
$1,570 $269.19
$2,205 $349.74
$3,924 $628.25
$2,145 $376.47
$1,300 $226.06 Exercise 03 Find Net Pay: In
Solution: Firstly, using the I
$1,635 $258.08 Secondly, find the total ded
$1,890 $325.13
$2,205 $387.15
$2,046 $344.74
$2,790 $478.86
$1,733 $291.21
$1,830 $314.64
 $1,485 $259.72
$1,962 $337.71
$1,665 $291.85
$1,830 $289.44
$1,395 $243.65
$2,130 $367.08

Exercise 04 Calculate Working Hours: Daily office entry time and exit time for an employee
called “Ross Johnson” is given for the month of December. Your task is to find the time
worked, late entry (in hour) if any, and overtime.
Tax Actual Pay

Exercise 05 Calculate Monthly Pay for an Employee: In the final

you will calculate the actual pay for the employee for the month
December.
 y employees are given.
y is provided in the
pay is 1.25 times of the
the same as the regular
n to find the relevant pay
s.
ount: The employees work in five different
ach. Use the tax rates from the “Reference
ount in this exercise.

Exercise 03 Find Net Pay: In this exercise, your task is to calculate the net pay of the employees.
Solution: Firstly, using the INDEX MATCH formula, input the benefits & other deductions.
Secondly, find the total deductions. Finally, calculate the net pay.
mployee
me
y Pay for an Employee: In the final exercise,
ay for the employee for the month of
 Reference Tables

Employee Benefits & Other Deductions Hourly Pay

Rachel $100 $17
Ross $19 $19
Joey $42 $10
Chandler $80 $15
Monica $87 $22
Phoebe $89 $15
Ben $41 $10
Adam $40 $15
Rowan $75 $15
Ellie $90 $15
Britt $64 $14
Alan $46 $17
Hamish $47 $13
Byron $101 $15
Bettjeman $73 $15
Harwood $54 $14
Clark $79 $15
Morrison $42 $15
Parkinson $18 $15
Coll $16 $15

State Tax:
State State Tax
Colorado 4.63%
Illinois 4.95%
Indiana 3.23%
Michigan 4.25%
Utah 5%

3 Other Taxes:
 Particular Tax Rate
Federal Tax 5.20%
Social Security Tax 6.20%
Medicare Tax 1.45%
 Payroll Exercises in Excel

Exercise 01 Find Gross Pay:

Date of Paid Time Nontaxable
Payment Employee State Regular Off Overtime Income
30-Nov-22 Rachel Michigan 152 6 $105
30-Nov-22 Ross Michigan 152 9 $170
30-Nov-22 Joey Colorado 144 10 $30
30-Nov-22 Chandler Indiana 140 5 $30
30-Nov-22 Monica Michigan 152 12 $250
30-Nov-22 Phoebe Illinois 141 $30
1-Dec-22 Ben Illinois 127 $30
1-Dec-22 Adam Indiana 99 8 $30
1-Dec-22 Rowan Colorado 124 $30
1-Dec-22 Ellie Illinois 141 4 $30
1-Dec-22 Britt Michigan 144 $30
1-Dec-22 Alan Illinois 152 5 $100
1-Dec-22 Hamish Michigan 121 10 $30
1-Dec-22 Byron Colorado 120 $30
1-Dec-22 Bettjeman Utah 87 10 $30
2-Dec-22 Harwood Colorado 138 $30
2-Dec-22 Clark Utah 101 8 $30
2-Dec-22 Morrison Indiana 120 $30
2-Dec-22 Parkinson Utah 85 6 $30
2-Dec-22 Coll Colorado 140 $30

Exercise 02 Calculate Tax Deduction Amount:

Date of Paid Time Nontaxable
Payment Employee State Regular Off Overtime Income
30-Nov-22 Rachel Michigan 152 6 $105
30-Nov-22 Ross Michigan 152 9 $170
30-Nov-22 Joey Colorado 144 10 $30
30-Nov-22 Chandler Indiana 140 5 $30
 30-Nov-22 Monica Michigan 152 12 $250
30-Nov-22 Phoebe Illinois 141 $30
1-Dec-22 Ben Illinois 127 $30
1-Dec-22 Adam Indiana 99 8 $30
1-Dec-22 Rowan Colorado 124 $30
1-Dec-22 Ellie Illinois 141 4 $30
1-Dec-22 Britt Michigan 144 $30
1-Dec-22 Alan Illinois 152 5 $100
1-Dec-22 Hamish Michigan 121 10 $30
1-Dec-22 Byron Colorado 120 $30
1-Dec-22 Bettjeman Utah 87 10 $30
2-Dec-22 Harwood Colorado 138 $30
2-Dec-22 Clark Utah 101 8 $30
2-Dec-22 Morrison Indiana 120 $30
2-Dec-22 Parkinson Utah 85 6 $30
2-Dec-22 Coll Colorado 140 $30

Exercise 03 Find Net Pay:

Date of Paid Time Nontaxable
Payment Employee State Regular Off Overtime Income
30-Nov-22 Rachel Michigan 152 6 $105
30-Nov-22 Ross Michigan 152 9 $170
30-Nov-22 Joey Colorado 144 10 $30
30-Nov-22 Chandler Indiana 140 5 $30
30-Nov-22 Monica Michigan 152 12 $250
30-Nov-22 Phoebe Illinois 141 $30
1-Dec-22 Ben Illinois 127 $30
1-Dec-22 Adam Indiana 99 8 $30
1-Dec-22 Rowan Colorado 124 $30
1-Dec-22 Ellie Illinois 141 4 $30
1-Dec-22 Britt Michigan 144 $30
1-Dec-22 Alan Illinois 152 5 $100
1-Dec-22 Hamish Michigan 121 10 $30
1-Dec-22 Byron Colorado 120 $30
 1-Dec-22 Bettjeman Utah 87 10 $30
2-Dec-22 Harwood Colorado 138 $30
2-Dec-22 Clark Utah 101 8 $30
2-Dec-22 Morrison Indiana 120 $30
2-Dec-22 Parkinson Utah 85 6 $30
2-Dec-22 Coll Colorado 140 $30

Exercise 04 Calculate Working Hours:

Employee Name : Ross Johnson Month: December, 2022

Time
Late Entry Overtime
Date Enter Time Exit Time Worked (Hour) (Hour)
(Hour)
1-Dec-22 8:20 AM 5:15 PM 8.92 0.00 0.92
2-Dec-22 8:00 AM 5:25 PM 9.42 0.00 1.42
5-Dec-22 9:10 AM 5:00 PM 7.83 0.00 0.00
6-Dec-22 9:15 AM 5:30 PM 8.25 0.00 0.25
7-Dec-22 9:20 AM 6:10 PM 8.83 0.00 0.83
8-Dec-22 9:30 AM 5:45 PM 8.25 0.00 0.25
9-Dec-22 10:00 AM 5:20 PM 7.33 0.00 0.00
12-Dec-22 9:00 AM 6:30 PM 9.50 0.00 1.50
13-Dec-22 8:45 AM 5:15 PM 8.50 0.00 0.50 Exercise 04 Calcula
called “Ross Johnso
14-Dec-22 10:30 AM 6:45 PM 8.25 0.50 0.25 worked, late entry
15-Dec-22 8:00 AM 4:00 PM 8.00 0.00 0.00
16-Dec-22 10:00 AM 5:11 PM 7.18 0.00 0.00
19-Dec-22 8:55 AM 4:32 PM 7.62 0.00 0.00
20-Dec-22 9:42 AM 5:22 PM 7.67 0.00 0.00
21-Dec-22 10:00 AM 6:25 PM 8.42 0.00 0.42
22-Dec-22 9:55 AM 5:49 PM 7.90 0.00 0.00
23-Dec-22 8:42 AM 4:52 PM 8.17 0.00 0.17
27-Dec-22 8:45 AM 5:49 PM 9.07 0.00 1.07
28-Dec-22 9:25 AM 6:02 PM 8.62 0.00 0.62
29-Dec-22 10:03 AM 6:05 PM 8.03 0.05 0.03
 30-Dec-22 11:05 AM 5:55 PM 6.83 1.08 0.00

Exercise 05 Calculate Monthly Pay for an Employee:

Employee Name : Ross Month: December,
Johnson 2022
Per Hour Pay $15 Late Fine $5
Overtime Pay $23

Entering Exiting Time Late Entry Overtime

Date Time Time Worked (Hour) (Hour) Daily Pay
(Hour)
1-Dec-22 8:20 AM 5:15 PM 8.92 0.00 0.92 $140.63
2-Dec-22 8:00 AM 5:25 PM 9.42 0.00 1.42 $151.88
5-Dec-22 9:10 AM 5:00 PM 7.83 0.00 0.00 $117.50
6-Dec-22 9:15 AM 5:30 PM 8.25 0.00 0.25 $125.62
7-Dec-22 9:20 AM 6:10 PM 8.83 0.00 0.83 $138.75
8-Dec-22 9:30 AM 5:45 PM 8.25 0.00 0.25 $125.63
9-Dec-22 10:00 AM 5:20 PM 7.33 0.00 0.00 $110.00
12-Dec-22 9:00 AM 6:30 PM 9.50 0.00 1.50 $153.75
13-Dec-22 8:45 AM 5:15 PM 8.50 0.00 0.50 $131.25
14-Dec-22 10:30 AM 6:45 PM 8.25 0.50 0.25 $123.13
15-Dec-22 8:00 AM 4:00 PM 8.00 0.00 0.00 $120.00
16-Dec-22 10:00 AM 5:11 PM 7.18 0.00 0.00 $107.75
19-Dec-22 8:55 AM 4:32 PM 7.62 0.00 0.00 $114.25
20-Dec-22 9:42 AM 5:22 PM 7.67 0.00 0.00 $115.00
21-Dec-22 10:00 AM 6:25 PM 8.42 0.00 0.42 $129.38
22-Dec-22 9:55 AM 5:49 PM 7.90 0.00 0.00 $118.50
23-Dec-22 8:42 AM 4:52 PM 8.17 0.00 0.17 $123.75
27-Dec-22 8:45 AM 5:49 PM 9.07 0.00 1.07 $144.00
28-Dec-22 9:25 AM 6:02 PM 8.62 0.00 0.62 $133.88
29-Dec-22 10:03 AM 6:05 PM 8.03 0.05 0.03 $120.50
30-Dec-22 11:05 AM 5:55 PM 6.83 1.08 0.00 $97.08
Total
Gross
Pay
$2,817
$3,272
Exercise 01 Find Gross Pay: Working hours for twenty employees are given. Your task i
$1,570 “Reference table” sheet. Additionally, the overtime pay is 1.25 times of the regular pay
$2,205 regular pay.
Solution: You will need to use the VLOOKUP function to find the relevant pay rates. Th
$3,924 Exercise 02 Calculate Tax Deduction Amount: The employees work in five different sta
from the “Reference table” sheet to find the tax deduction amount in this exercise.
$2,145 Solution: There are four kinds of taxes in this exercise. Apply the state tax using the VL
$1,300 Exercise 03 Find Net Pay: In this exercise, your task is to calculate the net pay of the em
Solution: Firstly, using the INDEX MATCH formula, input the benefits & other deductio
$1,635 pay.
Exercise 04 Calculate Working Hours: Daily office entry time and exit time for an empl
$1,890 Your task is to find the time worked, late entry (in hour) if any, and overtime.
$2,205 Solution: Employees should enter the office before 10 AM, else they will be late. More
the durations are given in hour:minute format, you will need to multiply it by 24 to get
$2,046 Exercise 05 Calculate Monthly Pay for an Employee: In the final exercise, you will calc
December.
$2,790 Solution: If the value of the time worked is more than 8 hours, then you need to consi
$1,733 hours, then that employee will get 8 hours of regular pay and 1 hour of overtime pay. A
a penalty will be applied. Finally, there is a flat 12% tax applicable from the gross pay. S
$1,830 find the total monthly pay.
$1,485
$1,962
$1,665
$1,830
$1,395
$2,130

Gross Tax
Pay Deductions
$2,817 $463.67
$3,272 $530.40
$1,570 $269.19
$2,205 $349.74
$3,924 $628.25
$2,145 $376.47
$1,300 $226.06
Exercise 02 Calculate Tax Deduction Amount: The employees work in five di
$1,635 $258.08 states. The state tax rate is different for each. Use the tax rates from the “Ref
$1,890 $325.13 table” sheet to find the tax deduction amount in this exercise.
$2,205 $387.15
$2,046 $344.74
$2,790 $478.86
$1,733 $291.21
$1,830 $314.64
$1,485 $259.72
$1,962 $337.71
$1,665 $291.85
$1,830 $289.44
$1,395 $243.65
$2,130 $367.08

Gross Tax Benefits & Other Total

Pay Deductions Deductions Deductions Net Pay
$2,817 $463.67 $100 $563.67 $2,252.83
$3,272 $530.40 $19 $549.40 $2,722.35
$1,570 $269.19 $42 $311.19 $1,258.81
$2,205 $349.74 $80 $429.74 $1,775.26
$3,924 $628.25 $87 $715.25 $3,208.75
$2,145 $376.47 $89 $465.47 $1,679.53
$1,300 $226.06 $41 $267.06 $1,032.94 Exercise 03 Find Net Pay: In
Solution: Firstly, using the I
$1,635 $258.08 $40 $298.08 $1,336.92 Secondly, find the total ded
$1,890 $325.13 $75 $400.13 $1,489.87
$2,205 $387.15 $90 $477.15 $1,727.85
$2,046 $344.74 $64 $408.74 $1,637.26
$2,790 $478.86 $46 $524.86 $2,265.39
$1,733 $291.21 $47 $338.21 $1,394.79
$1,830 $314.64 $101 $415.64 $1,414.36
 $1,485 $259.72 $73 $332.72 $1,152.28
$1,962 $337.71 $54 $391.71 $1,570.29
$1,665 $291.85 $79 $370.85 $1,294.15
$1,830 $289.44 $42 $331.44 $1,498.56
$1,395 $243.65 $18 $261.65 $1,133.35
$2,130 $367.08 $16 $383.08 $1,746.92

Exercise 04 Calculate Working Hours: Daily office entry time and exit time for an employee
called “Ross Johnson” is given for the month of December. Your task is to find the time
worked, late entry (in hour) if any, and overtime.
 Tax Actual Pay

$16.88 $123.75
$18.23 $133.65
$14.10 $103.40
$15.07 $110.55 Exercise 05 Calculate Monthly Pay for an Employee: In the final
$16.65 $122.10 you will calculate the actual pay for the employee for the month
December.
$15.08 $110.55
$13.20 $96.80
$18.45 $135.30
$15.75 $115.50
$14.77 $108.35
$14.40 $105.60
$12.93 $94.82
$13.71 $100.54
$13.80 $101.20
$15.53 $113.85
$14.22 $104.28
$14.85 $108.90
$17.28 $126.72
$16.07 $117.81
$14.46 $106.04
$11.65 $85.43
$2,325.14
nty employees are given. Your task is to calculate the gross pay. The hourly pay is provided in the
pay is 1.25 times of the regular pay and the payment for the paid time off is the same as the

on to find the relevant pay rates. The hourly pay is different for many employees.
employees work in five different states. The state tax rate is different for each. Use the tax rates
duction amount in this exercise.
ise. Apply the state tax using the VLOOKUP function.
is to calculate the net pay of the employees.
nput the benefits & other deductions. Secondly, find the total deductions. Finally, calculate the net
ntry time and exit time for an employee called “Ross Johnson” is given for the month of December.
hour) if any, and overtime.
10 AM, else they will be late. More than 8 hours of work is considered as overtime. Moreover, as
will need to multiply it by 24 to get the hour value.
e: In the final exercise, you will calculate the actual pay for the employee for the month of
han 8 hours, then you need to consider the overtime pay. For example, if an employee worked 9
ar pay and 1 hour of overtime pay. Additionally, if an employee enters the office after 10 AM, then
tax applicable from the gross pay. So, actual pay = 0.88*daily pay. Lastly, add all the daily pay to
ount: The employees work in five different
ach. Use the tax rates from the “Reference
ount in this exercise.

Exercise 03 Find Net Pay: In this exercise, your task is to calculate the net pay of the employees.
Solution: Firstly, using the INDEX MATCH formula, input the benefits & other deductions.
Secondly, find the total deductions. Finally, calculate the net pay.
mployee
me
y Pay for an Employee: In the final exercise,
ay for the employee for the month of