How to Use Microsoft Excel for Payroll

1. 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.
2. 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.
3. 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.