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Paycheck Overview |
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Paycheck Overview |
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Paycheck Overview
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Paycheck Overview |
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Paycheck Overview |
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The Paycheck Calculator is divided into two main sections: the main data entry is on the left side and the calculations with the proposed scenarios are on the right side.
After an illustration is created, additional illustrations are also available through the toolbar at the top-right of the Paycheck Calculator.
| 1. | The Federal 1040 illustration may be added by clicking on the 1040... button. This illustration moves a Federal 1040 return into a qualified plan by changing the withholding allowances. |
| Note: | This button is disabled if the current paycheck does not have a value entered for the income |
| 2. | The accumulation and distribution of the qualified plan may be illustrated by clicking on the Projections... button. |
Getting Started with the Paycheck Calculator
To get started, the first step is to properly configure an employer file. This will make working in the paycheck calculator quicker and easier.
The second step is to enter the client data in the left-most column.
Finally, work with the calculation data on the right hand side to show various scenarios.
| Note: | A properly configured employer file is essential to a correctly calculated paycheck. |
The main input data on the left:
| Notes: | The screen may vary depending upon settings in the employer file. |
Additional paychecks may also be added by clicking on the tabs on the far-left.
A spouse's paycheck may be included in the illustration by clicking on the 'Spouse #1' tab on the far left. (It is shown in gray, indicating there is currently no data for the paycheck.)
On the left side of the screen you see 7 sections:
| • | Employer File selector (Click here for more information about employer files.) |
| • | Income fields (gross income per paycheck and, optionally, additional income) |
| • | Pre-tax qualified withdrawals (Section 125, and up to 3 qualified plans, optional except for the main qualified plan) |
| • | Summer Pay (optional) |
| • | Taxation (state and local fields are optional) |
| • | After-Tax Deductions (optional) |
| • | Roth accounts (optional, not shown) |
The calculations on the right:
After configuring an employer file, and entering the fields on the left side of the Paycheck Calculator, TRAK will show the client's paycheck values in the right hand columns.
The right side of the screen shows three columns that let you compare current paycheck values against two proposed client scenarios. The calculations are divided into:
| a. | The Current column. When the employer file is configured correctly, and the data is correctly entered on the left side, this column should closely match a client's paycheck stub. |
| b. | The Quick Max (or Proposed #1, depending upon the selection) column. The Quick Max column displays a quick maximum-allowable-contribution calculation to the retirement plan. |
| c. | The Proposed #1 (or Proposed #2) column allows for quick 'what-if' scenarios, illustrating the difference between plan contributions and take-home pay, how a raise affects the take-home-pay, etc. |
| Note: | A correct paycheck depends on a properly configured employer file. |
| Sales Tips | Two areas to focus on when working with the Paycheck Calculator are the employer matching contributions (only displayed if the employer file's retirement plan is configured with a match) and the total tax savings. |