What is the best way to figure out a pay reduction. The owner wants to 'take home" $500 less per month. How do I figure out without just guesstimating til I score? lol

Hi JFriesen:

If you know the annual salary of the owner, you can determine their 'marginal tax rate'.  Then we know that we want to reach

Gross Pay - (marginal tax rate * Gross Pay) = Take Home Pay - 500

Or, Gross Pay = (Take Home - 500) / (1 - Marginal Tax Rate)

Then you can go under Employees and update his annual salary accordingly to the new Gross Pay amount.

Note: this doesn't take into account any benefits, or vacation pay so if that's being included as well in the overall $500 you'd have to adjust for those amounts.

Hope this helps!

Lance.

Thank You for your reply :)