Payroll Calculator
Calculate gross pay, deductions, taxes, and net take-home pay for employees and contractors.
Calculate Payroll
Enter employee details and compensation information
Payroll Results
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Understanding Payroll Calculations
Key Payroll Components
- Gross Pay: Total earnings before any deductions
- Federal Tax: Based on IRS tax brackets and filing status
- FICA Taxes: Social Security (6.2%) and Medicare (1.45%)
- State Tax: Varies by state (0-13.3%)
- Net Pay: Take-home pay after all deductions
Payroll Best Practices
- Always calculate overtime for non-exempt employees
- Consider state and local tax requirements
- Account for retirement contributions and benefits
- Stay updated with changing tax laws and rates
- Provide clear pay stubs with detailed breakdowns
State Income Tax Rates
No Income Tax
Low Tax (0-5%)
Medium Tax (5-8%)
High Tax (8%+)
Payroll Calculator FAQs
What's the difference between gross pay and net pay?
Gross pay is your total earnings before any deductions. Net pay (take-home pay) is what you receive after all taxes, insurance, retirement contributions, and other deductions are subtracted.
How are federal taxes calculated?
Federal taxes use progressive tax brackets. Your income is taxed at different rates as it moves through each bracket. The calculator uses 2024 tax brackets for married filing jointly: 10% up to $23,200, 12% up to $94,300, 22% up to $201,050, etc.
What are FICA taxes?
FICA stands for Federal Insurance Contributions Act. It includes Social Security tax (6.2% on income up to $168,600) and Medicare tax (1.45% on all income). Self-employed individuals pay both employer and employee portions.
How does overtime pay work?
Non-exempt employees must receive overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek. Some states have daily overtime rules or higher overtime rates.
What's the difference between bi-weekly and semi-monthly pay?
Bi-weekly pay means 26 pay periods per year (every two weeks). Semi-monthly pay means 24 pay periods per year (twice a month, e.g., 15th and last day). Annual salary divided by pay periods determines gross pay per period.