FIACCT 11-03_00 Payroll – PayBreeze Software – How to Use

Effective: August 1, 1990
Revised: March 15, 2018
Reviewed: March 15, 2018

Purpose

To outline policies and procedures for using the PayBreeze software.

Background

PayBreeze is a premier paycheck software program used to calculate net pay, gross-up amounts, and tax withholding information based on earnings, deductions taken, and current tax withholding rates. It may be used to generate employee earnings statements, view current tax tables, limits, and tax calculation details. Additional features include a W-4 withholding calculator, a 401(k) analysis tool, and direct links in the program to IRS Publication-15 and the current Form W-4.

Policy

A. The PayBreeze program shall only be used to provide information to employees, and is not to be used for counseling employees on the number of withholding allowances to claim on the W-4 Form. Employees should be notified that they are responsible for the marital status and number of allowances they claim on their W-4 form. The State provides information, not tax advice.

B. The DAS Division of Finance has paid for twenty-five (25) “site licenses,” which allow for the PayBreeze software to be copied multiple times for use at any of the locations listed below. The PayBreeze Licensing Agreement allows for an unlimited number of users of the software, as long as they are located at (or operate out of) the address for which the license was purchased.

• Alcoholic Beverage Control
(1625 S 900 W, SLC)

• Board of Pardons and Parole
(448 E 6400 S, Suite 300, Murray)

• Cannon Health Building
(288 N 1460 W, SLC)

• Developmental Center
(895 N 900 E, American Fork)

• Education
(250 E 500 S, SLC)

• Human Services
(195 N 1950 W, SLC)

• Agriculture
(350 N Redwood Rd, SLC)

• Calvin Rampton Complex
(4501 S 2700 W, SLC)

• Corrections
(14717 S Minuteman Dr, Draper)

• Education/USDB
(742 Harrison Blvd, Ogden)

• Heber M. Wells Building
(160 E 300 S, SLC)

• Lone Peak Conservation Center
(271 W Bitterbursh Ln, Draper)

• National Guard
(12953 S Minuteman Dr, SLC)

• Rio Grande Depot
(300 S Rio Grande, SLC)

• State Capitol (Capitol Hill)
(350 N State St, SLC)

• State Office Building (Capitol Hill)
(450 N State St, SLC)

• State Hospital
(1300 E Center St, Provo)

• Trust Lands Administration
(675 E 500 S, SLC)

• World Trade Center UT at City Creek
(60 E South Temple, SLC)

• Natural Resources
(1594 W North Temple, SLC)

• Scott Matheson Courthouse
(450 S State St, SLC)

• Senate Bldg. – East (Capitol Hill)
(120 E Capitol St, SLC)

• House Bldg. – West (Capitol Hill)
(350 N State St, SLC)

• Trust Lands Administration
(675 E 500 S, SLC)

• Work Force Services
(140 E 300 S, SLC)

C. Departments are allowed to make as many copies of the PayBreeze software as they desire, as long as the copies remain at the locations listed above.

D. Departments are allowed to install PayBreeze on local area networks, as long as access is restricted to machines in the building.

E. Additional site licenses may be obtained by interested departments directly from the vendor. For vendor information, contact the DAS Division of Finance Payroll Section.

F. The DAS Division of Finance will distribute one copy of the PayBreeze software and installation instructions to one human resources and/or payroll representative for each of the buildings listed in section B.

G. The DAS Division of Finance will distribute any updates to the PayBreeze program as they become
available, to the human resources and/or payroll representative for each building that received a copy of the software as described in section F.

Accessing PayBreeze

Installation of the PayBreeze program is quick and easy using the PayBreeze setup wizard. The installer
will guide the user through the steps required to install PayBreeze on a computer. Once installation is
complete, double-click on the PayBreezeII icon on the desktop to open and begin using the program.

NOTE: Click on Help and Contents to view the key features, customization options, and instructions for
using PayBreeze.

Using PayBreeze

Net Pay Calculation – Allows a user to enter on a screen payroll, tax, and deduction information for
a specific employee. The program then calculates the net pay amount the employee will receive.
This is useful for answering employee questions about what their net pay will be, based on certain
deductions taken, their earnings, and current tax withholding rates.
Gross Up Calculation – Allows the user to enter on a screen payroll, tax, deduction, and net pay information for a specific employee. The program then calculates the gross amount the employee must earn.

This is useful for giving the employee the gross amount to be earned in order to have a net pay of a
specific dollar amount.
W-4 Withholding Calculation – Calculates total federal and state (W-2) withholding for the year, based on earnings information and on the number of allowances claimed by the employee.

This is useful for answering employee questions such as, “What would my withholding be for the
year if I changed my W-4 allowances to…?”

PayBreeze Paycheck Calculator

Pre-Tax Plan Deductions require special entry consideration when using the PayBreeze paycheck
calculator. Once entries are completed, click on the Printer icon to print the Earnings Statement, or use the drop down arrow and select the Form.

401(k)/457 Plans

Select pre-tax plans type Plan401k, and $ (for specified dollar amount) or % (for percentage), then enter the amount deferred each pay period in the $Amt/% field. (These items have an asterisk * next to them on the pay statement or payroll check stub.)

HSA/Health Savings Acct

Select pre-tax plans type PlanHSA, and $ (for specified dollar amount), then enter the non-taxable Health Savings Account deductions from employee wages (per pay period). (This item will have an asterisk * next to them on the pay statement or payroll check stub.)
Example:
• Health Savings deferrals

Non-Taxable Payments/
Reimbursements

Enter non-taxable payments in the Earnings section. Click on the No (under Options) to display the Earnings Options and check the boxes to Exclude from All Federal and State Taxes, click Close. (These items have an asterisk * next to them on the pay statement or payroll check stub.)
Examples:
• Mileage reimbursements
• Moving Expense reimbursements
• Telephone reimbursements
• Uniform allowance (No Tax)

Taxable Non-Cash Earnings require special entry consideration when using the PayBreeze paycheck calculator.

Taxable Non-Cash Earnings

Enter taxable non-cash earnings in the Earnings section and in the Other After Tax Deductions section.

Examples:
• Clothing allowance
• EE GTLI Taxable (Taxable Value of Exempt Life Insurance)
• Non-Cash Service/Incentive Awards

PayBreeze W-4 Withholding Calculator

To access the W-4 Withholding Calculator you must first setup a typical paycheck with positive earnings using the PayBreeze Paycheck Calculator (as described above).

Warning: In order to enter YTD Contribution Amounts for the 401(k)/457 plans in the W-4 Withholding Calculator, you will need to also include the 401(k)/457 deferral amounts for the pay period in the Pre-Tax Plans section of the paycheck calculator.

Next click on the W-4 link located near the top of the screen and follow the special entry considerations listed below. Once you have completed entries, click the Calculate button. The Print preview screen will display the W-4 Withholding Calculator report.

Next Check Date

Enter the next actual check date, not the pay period end date.
Warning: If the user puts in a pay period end date the calculation will be incorrect because PayBreeze will think there is an extra payday during the year.

Y-T-D Withholding Tax

Enter the Federal and State year to date contribution amounts in the designated Federal and State fields.

YTD Contribution

Enter the year to date contribution amounts for the 401(k)/457 plans in the Amounts 401(k)/457 Plans designated field.