Calculate My Check

Paycheck Estimator

function calculatePaycheck() { var grossPay = parseFloat(document.getElementById("grossPay").value); var preTaxDeductions = parseFloat(document.getElementById("preTaxDeductions").value); var federalTaxRate = parseFloat(document.getElementById("federalTaxRate").value); var stateTaxRate = parseFloat(document.getElementById("stateTaxRate").value); var postTaxDeductions = parseFloat(document.getElementById("postTaxDeductions").value); if (isNaN(grossPay) || isNaN(preTaxDeductions) || isNaN(federalTaxRate) || isNaN(stateTaxRate) || isNaN(postTaxDeductions) || grossPay < 0 || preTaxDeductions < 0 || federalTaxRate < 0 || stateTaxRate < 0 || postTaxDeductions < 0) { document.getElementById("result").innerHTML = "Please enter valid positive numbers for all fields."; return; } // FICA Taxes (Social Security and Medicare) var socialSecurityRate = 0.062; // 6.2% var medicareRate = 0.0145; // 1.45% var socialSecurityWageBaseLimit = 168600; // For 2024, annual limit. This calculator assumes per-period gross is below this limit for simplicity. // Calculate Taxable Gross var taxableGross = grossPay – preTaxDeductions; if (taxableGross < 0) { taxableGross = 0; // Taxable income cannot be negative } // Calculate Taxes var federalTax = taxableGross * (federalTaxRate / 100); var stateTax = taxableGross * (stateTaxRate / 100); var socialSecurityTax = grossPay * socialSecurityRate; // Simplified: For a per-period calculator, applying to gross is common. // A more complex calculator would track year-to-date earnings against the limit. var medicareTax = grossPay * medicareRate; // Total Deductions var totalDeductions = preTaxDeductions + federalTax + stateTax + socialSecurityTax + medicareTax + postTaxDeductions; // Net Pay var netPay = grossPay – totalDeductions; if (netPay < 0) { netPay = 0; // Net pay cannot be negative } document.getElementById("result").innerHTML = "

Your Estimated Paycheck Details:

" + "Gross Pay: $" + grossPay.toFixed(2) + "" + "Pre-Tax Deductions: $" + preTaxDeductions.toFixed(2) + "" + "Taxable Gross: $" + taxableGross.toFixed(2) + "" + "Federal Income Tax: $" + federalTax.toFixed(2) + "" + "State Income Tax: $" + stateTax.toFixed(2) + "" + "Social Security Tax (6.2%): $" + socialSecurityTax.toFixed(2) + "" + "Medicare Tax (1.45%): $" + medicareTax.toFixed(2) + "" + "Post-Tax Deductions: $" + postTaxDeductions.toFixed(2) + "" + "Estimated Net Pay: $" + netPay.toFixed(2) + ""; }

Understanding Your Paycheck: A Comprehensive Guide

For many, seeing the difference between their gross salary and the actual amount deposited into their bank account can be a bit of a shock. This difference is due to various deductions and taxes that are legally required or voluntarily chosen. Understanding how your paycheck is calculated is crucial for personal financial planning and budgeting.

What is a Paycheck?

A paycheck, or pay stub, is a document provided by an employer that details an employee's earnings and deductions for a specific pay period. It breaks down your total compensation into its various components, showing how your gross pay is reduced to your net pay.

Key Components of Your Paycheck

1. Gross Pay

This is your total earnings before any deductions or taxes are taken out. For salaried employees, it's your annual salary divided by the number of pay periods (e.g., 26 for bi-weekly, 12 for monthly). For hourly employees, it's your hourly rate multiplied by the number of hours worked, plus any overtime, bonuses, or commissions.

Example: If you earn $50,000 annually and are paid bi-weekly (26 pay periods), your gross pay per period would be $50,000 / 26 = $1,923.08.

2. Pre-Tax Deductions

These are amounts taken out of your gross pay before taxes are calculated. Because they reduce your taxable income, they can lower your overall tax liability. Common pre-tax deductions include:

• Health Insurance Premiums: Your share of the cost for medical, dental, or vision insurance.
• 401(k) or 403(b) Contributions: Money you contribute to a retirement plan.
• Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs): Funds set aside for healthcare or dependent care expenses.

Example: If your gross pay is $2,000 and you contribute $100 to your 401(k) and $50 for health insurance, your total pre-tax deductions are $150.

3. Taxable Gross Income

This is the amount of your income that is subject to income taxes. It's calculated by subtracting your pre-tax deductions from your gross pay.

Example: With a gross pay of $2,000 and $150 in pre-tax deductions, your taxable gross income is $2,000 – $150 = $1,850.

4. Taxes Withheld

This is often the largest chunk of deductions. Your employer is required to withhold taxes from your paycheck and send them to the appropriate government agencies. These include:

• Federal Income Tax: Based on your W-4 form, filing status, and income level. The calculator uses a simplified percentage for estimation.
• State Income Tax: Applicable in most states, also based on state-specific withholding rules.
• Social Security Tax (FICA): A federal tax that funds Social Security benefits. The current rate is 6.2% of your gross pay, up to an annual wage base limit (e.g., $168,600 for 2024).
• Medicare Tax (FICA): A federal tax that funds Medicare. The current rate is 1.45% of your gross pay, with no wage base limit.

Example: On a taxable gross of $1,850, with a 15% federal tax rate and 5% state tax rate, federal tax would be $277.50 and state tax $92.50. Social Security on $2,000 gross would be $124, and Medicare $29.

5. Post-Tax Deductions

These are deductions taken out of your pay after all taxes have been calculated and withheld. They do not reduce your taxable income. Common post-tax deductions include:

• Roth 401(k) Contributions: Contributions to a Roth retirement plan are made with after-tax dollars.
• Union Dues: Fees paid to a labor union.
• Garnishments: Court-ordered deductions for debts like child support or unpaid taxes.
• Charitable Contributions: Donations made directly from your paycheck.

Example: If you contribute $50 to a Roth 401(k) per pay period, this is a post-tax deduction.

6. Net Pay (Take-Home Pay)

This is the final amount you receive after all deductions and taxes have been subtracted from your gross pay. It's the money that actually lands in your bank account or is given to you as a physical check.

Example: Using the numbers above: Gross Pay ($2,000) – Pre-Tax Deductions ($150) – Federal Tax ($277.50) – State Tax ($92.50) – Social Security ($124) – Medicare ($29) – Post-Tax Deductions ($50) = Net Pay ($1,277).

How to Use the Paycheck Estimator

Our Paycheck Estimator helps you quickly calculate your estimated net pay based on common deductions and tax rates. Simply enter the following information for your specific pay period:

1. Gross Pay per Period: Your total earnings before any deductions for this pay period.
2. Pre-Tax Deductions per Period: The total amount of deductions (like 401k, health insurance) taken out before taxes.
3. Federal Income Tax Rate (%): Your estimated federal income tax withholding rate. This is a simplified input; actual withholding depends on your W-4.
4. State Income Tax Rate (%): Your estimated state income tax withholding rate.
5. Post-Tax Deductions per Period: The total amount of deductions (like Roth 401k, union dues) taken out after taxes.

Click "Calculate Net Pay" to see a detailed breakdown of your estimated taxes and deductions, culminating in your take-home pay.

Keep in mind that this calculator provides an estimate. Actual tax withholding can be complex and may vary based on specific state laws, local taxes, and the details of your W-4 form. For precise figures, always refer to your official pay stub or consult with a tax professional.