Calculate Paycheck

Paycheck Calculator

function calculatePaycheck() { var grossPay = parseFloat(document.getElementById('grossPay').value); var payFrequency = parseFloat(document.getElementById('payFrequency').value); var preTax401k = parseFloat(document.getElementById('preTax401k').value); var preTaxHealth = parseFloat(document.getElementById('preTaxHealth').value); var federalTaxRateInput = parseFloat(document.getElementById('federalTaxRateInput').value); var stateTaxRateInput = parseFloat(document.getElementById('stateTaxRateInput').value); var otherPostTax = parseFloat(document.getElementById('otherPostTax').value); // Validate inputs if (isNaN(grossPay) || grossPay < 0) grossPay = 0; if (isNaN(preTax401k) || preTax401k < 0) preTax401k = 0; if (isNaN(preTaxHealth) || preTaxHealth < 0) preTaxHealth = 0; if (isNaN(federalTaxRateInput) || federalTaxRateInput 100) federalTaxRateInput = 0; if (isNaN(stateTaxRateInput) || stateTaxRateInput 100) stateTaxRateInput = 0; if (isNaN(otherPostTax) || otherPostTax grossPay) { totalPreTaxDeductions = grossPay; } // 2. Calculate Taxable Gross for Income Tax (Federal & State) var taxableGrossForIncomeTax = grossPay – totalPreTaxDeductions; if (taxableGrossForIncomeTax < 0) taxableGrossForIncomeTax = 0; // 3. Calculate Federal and State Income Tax var federalIncomeTax = taxableGrossForIncomeTax * federalTaxRate; var stateIncomeTax = taxableGrossForIncomeTax * stateTaxRate; // 4. Calculate FICA Taxes (Social Security & Medicare) // FICA taxes are generally calculated on gross pay before most pre-tax deductions. // Social Security has an annual wage base limit. For a single pay period calculator, // it's difficult to track year-to-date earnings. We'll apply the rate directly to // the gross pay for the period, but acknowledge the annual limit in the explanation. var annualGrossPay = grossPay * payFrequency; var socialSecurityTaxableAmount = grossPay; // If annual gross pay exceeds the limit, we need to consider if this period's gross pushes it over. // For simplicity in a single-period calculator, we'll apply the rate to the current period's gross, // and note the annual limit. A more complex calculator would track YTD earnings. // For this calculator, we'll assume the full gross for the period is subject to SS tax, // and the user should be aware of the annual limit. // A more accurate per-period calculation for SS would require YTD earnings. // For a simple calculator, applying to current gross is common. var socialSecurityTax = socialSecurityTaxableAmount * socialSecurityRate; var medicareTax = grossPay * medicareRate; // 5. Calculate Total Taxes var totalTaxes = federalIncomeTax + stateIncomeTax + socialSecurityTax + medicareTax; // 6. Calculate Net Pay var netPay = grossPay – totalPreTaxDeductions – totalTaxes – otherPostTax; if (netPay < 0) netPay = 0; // Net pay cannot be negative // Display Results document.getElementById('grossPayResult').innerText = '$' + grossPay.toFixed(2); document.getElementById('totalPreTaxDeductionsResult').innerText = '$' + totalPreTaxDeductions.toFixed(2); document.getElementById('taxableGrossResult').innerText = '$' + taxableGrossForIncomeTax.toFixed(2); document.getElementById('federalTaxResult').innerText = '$' + 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('otherPostTaxResultDisplay').innerText = '$' + otherPostTax.toFixed(2); document.getElementById('netPayResult').innerText = '$' + netPay.toFixed(2); } // Run calculation on page load with default values window.onload = calculatePaycheck;

Understanding Your Paycheck: A Detailed Guide

Your paycheck is more than just a number; it's a breakdown of your earnings and the various deductions taken out before you receive your take-home pay. Understanding each component can help you manage your finances better and ensure accuracy.

What is Gross Pay?

Gross pay is the total amount of money you earn before any deductions 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 per hour and work 80 hours in a bi-weekly pay period, your gross pay would be $25 * 80 = $2,000.

Pre-tax Deductions

These are deductions taken from your gross pay before taxes are calculated. They reduce your taxable income, meaning you pay less in federal and state income taxes. Common pre-tax deductions include:

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

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

Taxable Gross Income

This is your gross pay minus your pre-tax deductions. This is the amount on which your federal and state income taxes are calculated.

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

Taxes Withheld

Several types of taxes are typically withheld from your paycheck:

• Federal Income Tax: This is paid to the U.S. government and is used to fund federal programs. The amount withheld depends on your income, filing status (single, married, head of household), and the allowances or credits you claim on your W-4 form. Our calculator uses an estimated percentage for simplicity.
• State Income Tax: Most states also levy an income tax. Like federal tax, the amount depends on your income and state-specific regulations. Some states do not have state income tax. Our calculator uses an estimated percentage.
• Social Security Tax (FICA): This funds retirement, disability, and survivor benefits. The current rate is 6.2% of your gross pay, up to an annual wage base limit (e.g., $168,600 for 2024). Once you earn above this limit in a year, you no longer pay Social Security tax on additional earnings.
• Medicare Tax (FICA): This funds hospital insurance for the elderly and disabled. The current rate is 1.45% of your gross pay, with no wage base limit. An additional Medicare tax of 0.9% applies to earnings above certain thresholds ($200,000 for single filers, $250,000 for married filing jointly).

Example: Using a taxable gross of $1,850, an estimated 15% federal tax rate, and 5% state tax rate:

• Federal Tax: $1,850 * 0.15 = $277.50
• State Tax: $1,850 * 0.05 = $92.50
• Social Security Tax (on $2,000 gross): $2,000 * 0.062 = $124.00
• Medicare Tax (on $2,000 gross): $2,000 * 0.0145 = $29.00
• Total Taxes: $277.50 + $92.50 + $124.00 + $29.00 = $523.00

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. Examples include:

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

Example: If you have $20 in other post-tax deductions.

Net Pay (Take-Home Pay)

This is the final amount you receive after all pre-tax deductions, taxes, and post-tax deductions have been subtracted from your gross pay. This is the money that gets deposited into your bank account or issued as a check.

Example:

• Gross Pay: $2,000.00
• Minus Pre-tax Deductions: $150.00
• Minus Total Taxes: $523.00
• Minus Other Post-tax Deductions: $20.00
• Net Pay: $2,000 – $150 – $523 – $20 = $1,307.00

Our Paycheck Calculator provides an estimate based on the information you provide. For precise figures, always refer to your official pay stubs or consult with a financial advisor or HR department, as actual tax withholdings can vary based on specific circumstances and local regulations.