Steps to Calculate PayrollThe Calculate Payroll option in Payroll is used to generate earnings calculations in order to print checks for employees (and payees). With the Calculate Payroll option, the system calculates the contracts for employees within the specified pay groups and the entries for employees within the selected batches for pay period entries, employee absences, and deduction/tax adjustments to determine the gross wages for each employee. The system then subtracts the amounts paid by the employee for taxes and deductions to determine the net wages for each employee, and expenses the amounts for taxes and deductions paid by the employer. After the payroll calculation is complete, the system displays a screen listing the number of employees calculated and any errors found. If any errors are found during the payroll calculation, the errors must be corrected and the batch (or individual employees with the errors) recalculated before continuing.