Payroll calculation can seem complex, but it's essentially the process of determining how much an employee earns (gross pay) and how much they actually take home after all deductions (net pay). This calculator helps you estimate your take-home pay based on your hourly wage, hours worked, and common tax deductions.
What is Gross Pay?
Gross pay is the total amount of money an employee earns before any deductions are taken out. For hourly employees, this typically includes regular hours worked multiplied by their hourly rate, plus any overtime hours worked multiplied by their overtime rate (often 1.5 times the regular rate).
Understanding Deductions
Deductions are amounts subtracted from your gross pay. They fall into several categories:
Federal Income Tax: This is a mandatory tax levied by the U.S. government on your earnings. The amount depends on your income, filing status, and W-4 elections.
State Income Tax: Many states also levy an income tax. The rate varies significantly by state, and some states have no income tax at all.
FICA Taxes (Social Security and Medicare): These are federal taxes that fund Social Security (retirement, disability, and survivor benefits) and Medicare (health insurance for the elderly and disabled). As of 2024, the Social Security tax rate is 6.2% on earnings up to an annual limit, and the Medicare tax rate is 1.45% on all earnings.
Other Deductions: These can include contributions to health insurance, retirement plans (like a 401k), union dues, or other voluntary deductions. Some of these might be pre-tax (reducing your taxable income) while others are post-tax. For simplicity, this calculator treats "Other Deductions" as a fixed post-tax amount.
What is Net Pay?
Net pay, also known as take-home pay, is the amount of money an employee receives after all taxes and other deductions have been subtracted from their gross pay. It's the actual amount that gets deposited into your bank account or paid to you via check.
Use the calculator below to get an estimate of your gross and net pay for a given pay period.
function calculatePayroll() {
var hourlyWage = parseFloat(document.getElementById("hourlyWage").value);
var regularHours = parseFloat(document.getElementById("regularHours").value);
var overtimeHours = parseFloat(document.getElementById("overtimeHours").value);
var overtimeMultiplier = parseFloat(document.getElementById("overtimeMultiplier").value);
var federalTaxRate = parseFloat(document.getElementById("federalTaxRate").value);
var stateTaxRate = parseFloat(document.getElementById("stateTaxRate").value);
var socialSecurityRate = parseFloat(document.getElementById("socialSecurityRate").value);
var medicareRate = parseFloat(document.getElementById("medicareRate").value);
var otherDeductions = parseFloat(document.getElementById("otherDeductions").value);
if (isNaN(hourlyWage) || hourlyWage < 0) {
alert("Please enter a valid hourly wage (e.g., 25.00).");
return;
}
if (isNaN(regularHours) || regularHours < 0) {
alert("Please enter valid regular hours worked (e.g., 40).");
return;
}
if (isNaN(overtimeHours) || overtimeHours < 0) {
alert("Please enter valid overtime hours worked (e.g., 5).");
return;
}
if (isNaN(overtimeMultiplier) || overtimeMultiplier < 1) {
alert("Please enter a valid overtime multiplier (e.g., 1.5).");
return;
}
if (isNaN(federalTaxRate) || federalTaxRate 100) {
alert("Please enter a valid federal tax rate (0-100).");
return;
}
if (isNaN(stateTaxRate) || stateTaxRate 100) {
alert("Please enter a valid state tax rate (0-100).");
return;
}
if (isNaN(socialSecurityRate) || socialSecurityRate 100) {
alert("Please enter a valid Social Security tax rate (0-100).");
return;
}
if (isNaN(medicareRate) || medicareRate 100) {
alert("Please enter a valid Medicare tax rate (0-100).");
return;
}
if (isNaN(otherDeductions) || otherDeductions < 0) {
alert("Please enter valid other deductions (e.g., 50.00).");
return;
}
var regularPay = hourlyWage * regularHours;
var overtimePay = hourlyWage * overtimeHours * overtimeMultiplier;
var grossPay = regularPay + overtimePay;
var federalTax = grossPay * (federalTaxRate / 100);
var stateTax = grossPay * (stateTaxRate / 100);
var socialSecurityTax = grossPay * (socialSecurityRate / 100);
var medicareTax = grossPay * (medicareRate / 100);
var totalTaxes = federalTax + stateTax + socialSecurityTax + medicareTax;
var totalDeductions = totalTaxes + otherDeductions;
var netPay = grossPay – totalDeductions;
var resultDiv = document.getElementById("payrollResult");
resultDiv.innerHTML = "