Manual Payroll Calculator
Use this calculator to manually determine an employee's gross pay, deductions, and net pay for a given pay period. This tool helps you understand the components of a paycheck.
Payroll Summary" + employeeInfo + periodInfo + "
"; resultsHTML += "Gross Pay:$" + grossPay.toFixed(2) + ""; resultsHTML += "Regular Pay:$" + regularPay.toFixed(2) + ""; resultsHTML += "Overtime Pay:$" + overtimePay.toFixed(2) + ""; resultsHTML += "Federal Income Tax:$" + federalTax.toFixed(2) + ""; resultsHTML += "State Income Tax:$" + stateTax.toFixed(2) + ""; resultsHTML += "Social Security Tax:$" + socialSecurityTax.toFixed(2) + ""; resultsHTML += "Medicare Tax:$" + medicareTax.toFixed(2) + ""; resultsHTML += "Other Deductions:$" + otherDeductions.toFixed(2) + ""; resultsHTML += "Total Deductions:-$" + totalDeductions.toFixed(2) + ""; resultsHTML += "Net Pay:$" + netPay.toFixed(2) + ""; resultsDiv.innerHTML = resultsHTML; }Understanding Your Paycheck: A Guide to Manual Payroll Calculation
Payroll processing is a critical function for any business, ensuring employees are paid accurately and on time. While many companies use automated systems, understanding the manual calculation process provides valuable insight into how a paycheck is structured. This manual payroll calculator helps you break down the components of an employee's earnings and deductions.
What is Gross Pay?
Gross pay is the total amount of money an employee earns before any deductions are taken out. It's the starting point for all payroll calculations. It typically includes:
- Regular Wages: Calculated by multiplying the number of regular hours worked by the employee's regular hourly pay rate.
- Overtime Wages: For hours worked beyond the standard workweek (e.g., 40 hours), employees often receive overtime pay, which is typically 1.5 times their regular hourly rate (time-and-a-half). Some industries or contracts may have different multipliers.
- Other Earnings: This can include bonuses, commissions, tips, or other forms of compensation, though this calculator focuses on hourly wages.
Formula: Gross Pay = (Regular Hours × Regular Rate) + (Overtime Hours × Regular Rate × Overtime Multiplier)
What are Payroll Deductions?
Deductions are amounts subtracted from an employee's gross pay, resulting in their net pay. These can be mandatory (required by law) or voluntary (elected by the employee).
Mandatory Deductions:
- Federal Income Tax: This is withheld from an employee's pay and sent to the federal government. The amount depends on the employee's W-4 form, marital status, and number of allowances, as well as their gross earnings. For simplicity, our calculator uses a flat percentage, but real-world calculations involve tax brackets.
- State Income Tax: Similar to federal tax, but withheld for state governments. Not all states have state income tax. The rate varies by state and income level.
- Social Security Tax (FICA): Part of the Federal Insurance Contributions Act, this tax funds retirement, disability, and survivor benefits. Both employees and employers contribute. The employee portion is typically 6.2% of gross wages up to an annual wage base limit.
- Medicare Tax (FICA): Also part of FICA, this tax funds hospital insurance for the elderly and disabled. The employee portion is typically 1.45% of all gross wages, with no wage base limit.
Other (Voluntary or Employer-Mandated) Deductions:
- Health Insurance Premiums: Employee contributions towards health, dental, or vision insurance.
- Retirement Contributions: Deductions for 401(k), 403(b), or other retirement plans.
- Garnishments: Court-ordered deductions for child support, alimony, or unpaid debts.
- Union Dues: If applicable.
- Loan Repayments: For company loans.
Formula: Total Deductions = Federal Tax + State Tax + Social Security Tax + Medicare Tax + Other Deductions
What is Net Pay?
Net pay, also known as "take-home pay," is the amount of money an employee receives after all deductions have been subtracted from their gross pay. This is the actual amount that gets deposited into their bank account or paid via check.
Formula: Net Pay = Gross Pay - Total Deductions
Example Calculation:
Let's use the default values in the calculator:
- Regular Hours: 80
- Overtime Hours: 5
- Regular Pay Rate: $25.00/hour
- Overtime Multiplier: 1.5
- Federal Tax Rate: 15%
- State Tax Rate: 5%
- Social Security Rate: 6.2%
- Medicare Rate: 1.45%
- Other Deductions: $50.00
- Calculate Regular Pay: 80 hours * $25.00/hour = $2,000.00
- Calculate Overtime Pay: 5 hours * $25.00/hour * 1.5 = $187.50
- Calculate Gross Pay: $2,000.00 + $187.50 = $2,187.50
- Calculate Federal Income Tax: $2,187.50 * 15% = $328.13
- Calculate State Income Tax: $2,187.50 * 5% = $109.38
- Calculate Social Security Tax: $2,187.50 * 6.2% = $135.63
- Calculate Medicare Tax: $2,187.50 * 1.45% = $31.72
- Calculate Total Deductions: $328.13 (Federal) + $109.38 (State) + $135.63 (SS) + $31.72 (Medicare) + $50.00 (Other) = $654.86
- Calculate Net Pay: $2,187.50 (Gross) – $654.86 (Total Deductions) = $1,532.64
This example demonstrates how each component contributes to the final take-home pay. Remember that actual tax calculations can be more complex, involving progressive tax brackets and specific withholding allowances, but this calculator provides a solid foundation for understanding the basics.