How to Calculate Your Check

Paycheck Calculator

function calculatePaycheck() { var grossPayPerPeriod = parseFloat(document.getElementById("grossPayPerPeriod").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); // Input validation if (isNaN(grossPayPerPeriod) || grossPayPerPeriod < 0) { alert("Please enter a valid Gross Pay per Pay Period."); return; } if (isNaN(preTaxDeductions) || preTaxDeductions < 0) { alert("Please enter valid Pre-Tax Deductions."); return; } if (isNaN(federalTaxRate) || federalTaxRate 100) { alert("Please enter a valid Federal Income Tax Withholding percentage (0-100)."); return; } if (isNaN(stateTaxRate) || stateTaxRate 100) { alert("Please enter a valid State Income Tax Withholding percentage (0-100)."); return; } if (isNaN(postTaxDeductions) || postTaxDeductions < 0) { alert("Please enter valid Post-Tax Deductions."); return; } // Calculate Taxable Gross Pay var taxableGrossPay = grossPayPerPeriod – preTaxDeductions; if (taxableGrossPay < 0) { taxableGrossPay = 0; // Cannot have negative taxable income } // Calculate FICA Taxes (Social Security and Medicare) var socialSecurityTaxRate = 0.062; // 6.2% var medicareTaxRate = 0.0145; // 1.45% var socialSecurityTax = grossPayPerPeriod * socialSecurityTaxRate; var medicareTax = grossPayPerPeriod * medicareTaxRate; // Calculate Federal and State Income Taxes var federalIncomeTax = taxableGrossPay * (federalTaxRate / 100); var stateIncomeTax = taxableGrossPay * (stateTaxRate / 100); // Calculate Total Taxes var totalTaxes = socialSecurityTax + medicareTax + federalIncomeTax + stateIncomeTax; // Calculate Net Pay var netPay = grossPayPerPeriod – preTaxDeductions – totalTaxes – postTaxDeductions; // Display Results document.getElementById("grossPayResult").innerText = "$" + grossPayPerPeriod.toFixed(2); document.getElementById("preTaxDeductionsResult").innerText = "$" + preTaxDeductions.toFixed(2); document.getElementById("taxableGrossResult").innerText = "$" + taxableGrossPay.toFixed(2); document.getElementById("federalTaxResult").innerText = "$" + federalIncomeTax.toFixed(2); document.getElementById("stateTaxResult").innerText = "$" + stateIncomeTax.toFixed(2); document.getElementById("socialSecurityTaxResult").innerText = "$" + socialSecurityTax.toFixed(2); document.getElementById("medicareTaxResult").innerText = "$" + medicareTax.toFixed(2); document.getElementById("totalTaxesResult").innerText = "$" + totalTaxes.toFixed(2); document.getElementById("postTaxDeductionsResult").innerText = "$" + postTaxDeductions.toFixed(2); document.getElementById("netPayResult").innerText = "$" + netPay.toFixed(2); } // Run calculation on page load with default values window.onload = calculatePaycheck;

Understanding Your Paycheck: A Comprehensive Guide

Your paycheck, often referred to as a pay stub, is more than just a number; it's a detailed breakdown of your earnings and deductions for a specific pay period. Understanding how your check is calculated is crucial for financial planning, budgeting, and ensuring you're paid correctly. This calculator helps you estimate your net pay by breaking down the common components of a typical paycheck.

Key Components of Your Paycheck

1. Gross Pay

This is your total earnings before any deductions or taxes are taken out. If you're an hourly employee, it's your hourly rate multiplied by the number of hours worked. For salaried employees, it's your annual salary divided by the number of pay periods in a year (e.g., 26 for bi-weekly, 12 for monthly).

Example: If you earn $25/hour and work 80 hours in a bi-weekly pay period, your Gross Pay is $2,000.

2. Pre-Tax Deductions

These are amounts subtracted from your gross pay before taxes are calculated. Because they reduce your taxable income, they can lower the amount of income tax you owe. Common pre-tax deductions include:

• Health, dental, and vision insurance premiums
• Contributions to a 401(k), 403(b), or traditional IRA
• Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs)

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 Pay

This is the amount of your income that is subject to federal and state 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 pay for income tax purposes would be $1,850.

4. Taxes Withheld

This is often the largest portion of your deductions. It includes:

• Federal Income Tax (FIT): This is withheld based on the information you provide on your W-4 form (filing status, dependents, additional withholding). The calculator uses a simplified percentage for estimation.
• State Income Tax (SIT): Similar to federal tax, but for your state. Not all states have income tax. The calculator uses a simplified percentage.
• Social Security Tax (FICA – SS): A mandatory federal tax that funds Social Security benefits. The current rate is 6.2% of your gross pay, up to an annual income limit.
• Medicare Tax (FICA – Med): Another mandatory federal tax that funds Medicare. The current rate is 1.45% of your gross pay, with no income limit.

Example: On a taxable gross of $1,850, if federal tax is 10% ($185) and state tax is 5% ($92.50). On a gross pay of $2,000, Social Security is $124 (6.2%) and Medicare is $29 (1.45%). Total taxes would be $185 + $92.50 + $124 + $29 = $430.50.

5. Post-Tax Deductions

These are deductions taken from 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
• Garnishments (e.g., child support, student loan defaults)
• Union dues
• Charitable contributions

Example: If you have $20 in post-tax deductions for union dues.

6. Net Pay

This is the "take-home pay" – the amount of money you actually receive after all deductions and taxes have been subtracted from your gross pay. It's the final amount deposited into your bank account or printed on your physical check.

Example: Gross Pay ($2,000) – Pre-Tax Deductions ($150) – Total Taxes ($430.50) – Post-Tax Deductions ($20) = Net Pay ($1,399.50).

How to Use the Paycheck Calculator

Our calculator simplifies the process of estimating your net pay. Simply input your gross pay per period, any pre-tax and post-tax deductions, and your estimated federal and state income tax withholding percentages. The calculator will then break down your estimated taxes and deductions, providing you with a clear picture of your take-home pay.

Please note: This calculator provides an estimate. Actual tax withholding can vary based on your specific W-4 elections, state and local tax laws, and annual income limits for certain taxes (like Social Security). Always refer to your official pay stub for exact figures.