How to Calculate Biweekly Payroll

Biweekly Payroll Calculator

Hourly Details

Salaried Details

Deductions & Taxes

function toggleEmploymentInputs() { var hourlyInputs = document.getElementById('hourlyInputs'); var salariedInputs = document.getElementById('salariedInputs'); var employmentTypeHourly = document.getElementById('employmentTypeHourly'); if (employmentTypeHourly.checked) { hourlyInputs.style.display = 'block'; salariedInputs.style.display = 'none'; } else { hourlyInputs.style.display = 'none'; salariedInputs.style.display = 'block'; } } function calculateBiweeklyPay() { var employmentTypeHourly = document.getElementById('employmentTypeHourly').checked; var grossBiweeklyPay = 0; if (employmentTypeHourly) { 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); if (isNaN(hourlyWage) || isNaN(regularHours) || isNaN(overtimeHours) || isNaN(overtimeMultiplier) || hourlyWage < 0 || regularHours < 0 || overtimeHours < 0 || overtimeMultiplier < 0) { alert('Please enter valid positive numbers for all hourly details.'); return; } var regularPayPerWeek = regularHours * hourlyWage; var overtimePayPerWeek = overtimeHours * hourlyWage * overtimeMultiplier; var totalWeeklyPay = regularPayPerWeek + overtimePayPerWeek; grossBiweeklyPay = totalWeeklyPay * 2; // Biweekly means 2 weeks } else { var annualSalary = parseFloat(document.getElementById('annualSalary').value); if (isNaN(annualSalary) || annualSalary < 0) { alert('Please enter a valid positive number for annual salary.'); return; } grossBiweeklyPay = annualSalary / 26; // 26 biweekly pay periods in a year } var preTaxDeductions = parseFloat(document.getElementById('preTaxDeductions').value); var taxWithholding = parseFloat(document.getElementById('taxWithholding').value); var postTaxDeductions = parseFloat(document.getElementById('postTaxDeductions').value); if (isNaN(preTaxDeductions) || isNaN(taxWithholding) || isNaN(postTaxDeductions) || preTaxDeductions < 0 || taxWithholding < 0 || postTaxDeductions 100) { alert('Estimated Tax Withholding cannot exceed 100%.'); return; } var taxableIncome = grossBiweeklyPay – preTaxDeductions; if (taxableIncome < 0) taxableIncome = 0; // Taxable income cannot be negative var estimatedTaxes = taxableIncome * (taxWithholding / 100); var netBiweeklyPay = taxableIncome – estimatedTaxes – postTaxDeductions; // Display results document.getElementById('grossPayResult').innerText = '$' + grossBiweeklyPay.toFixed(2); document.getElementById('preTaxDeductionsResult').innerText = '$' + preTaxDeductions.toFixed(2); document.getElementById('taxableIncomeResult').innerText = '$' + taxableIncome.toFixed(2); document.getElementById('estimatedTaxesResult').innerText = '$' + estimatedTaxes.toFixed(2); document.getElementById('postTaxDeductionsResult').innerText = '$' + postTaxDeductions.toFixed(2); document.getElementById('netPayResult').innerText = '$' + netBiweeklyPay.toFixed(2); document.getElementById('result').style.display = 'block'; } // Initialize the correct input display on load window.onload = toggleEmploymentInputs;

Understanding Biweekly Payroll

Biweekly payroll is a common payment schedule where employees are paid every two weeks. This results in 26 paychecks per year, as opposed to semimonthly (twice a month, 24 paychecks) or weekly (52 paychecks). For many, biweekly pay offers a predictable income stream that aligns well with monthly expenses while also providing two "extra" paychecks a year compared to a semimonthly schedule.

How Biweekly Payroll Works

Calculating your biweekly pay involves several steps, starting from your gross earnings and accounting for various deductions. Here's a breakdown of the components:

1. Gross Biweekly Pay

• For Hourly Employees: Your gross pay is calculated by multiplying your hourly wage by the number of regular hours worked in two weeks, plus any overtime hours at their respective multiplier (e.g., 1.5x for time and a half).
  Formula: (Regular Hours per Week × Hourly Wage + Overtime Hours per Week × Hourly Wage × Overtime Multiplier) × 2
• For Salaried Employees: Your annual salary is simply divided by 26 (the number of biweekly pay periods in a year).
  Formula: Annual Salary / 26

2. Pre-tax Deductions

These are deductions taken from your gross pay before taxes are calculated. Common examples include health insurance premiums, dental insurance, vision insurance, and contributions to a 401(k) or other retirement plans (if they are pre-tax). These deductions reduce your taxable income.

3. Taxable Income

This is the amount of your gross pay remaining after pre-tax deductions have been subtracted. Your income taxes (federal, state, local) are calculated based on this amount.

Formula: Gross Biweekly Pay – Pre-tax Deductions

4. Estimated Taxes Withheld

Employers are required to withhold a portion of your pay for federal, state, and sometimes local income taxes, as well as FICA taxes (Social Security and Medicare). For simplicity, our calculator uses a single estimated tax withholding percentage. In reality, tax calculations are more complex, involving tax brackets, filing status, and W-4 elections.

Formula: Taxable Income × (Estimated Tax Withholding Percentage / 100)

5. Post-tax Deductions

These deductions are taken from your pay after all taxes have been calculated and withheld. Examples include Roth 401(k) contributions, garnishments, union dues, or repayments for certain company loans.

6. Net Biweekly 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. It's the money that actually lands in your bank account.

Formula: Taxable Income – Estimated Taxes Withheld – Post-tax Deductions

Using the Biweekly Payroll Calculator

Our calculator simplifies the process of estimating your biweekly take-home pay. Simply select your employment type (hourly or salaried) and input the relevant details:

• Hourly Wage: Your pay rate per hour.
• Regular Hours per Week: Standard hours worked in a week (e.g., 40).
• Overtime Hours per Week: Any hours worked beyond regular hours.
• Overtime Pay Multiplier: How much more you get paid for overtime (e.g., 1.5 for time and a half, 2 for double time).
• Annual Salary: Your total yearly earnings before any deductions.
• Pre-tax Deductions per Pay Period: The total amount of deductions taken before taxes for each biweekly period.
• Estimated Tax Withholding (%): Your best estimate for the percentage of your taxable income that will be withheld for taxes.
• Post-tax Deductions per Pay Period: The total amount of deductions taken after taxes for each biweekly period.

Click "Calculate Biweekly Pay" to see a detailed breakdown of your gross pay, deductions, and net take-home pay.

Example Calculation

Let's consider an example for an hourly employee:

• Employment Type: Hourly
• Hourly Wage: $25.00
• Regular Hours per Week: 40
• Overtime Hours per Week: 5
• Overtime Pay Multiplier: 1.5
• Pre-tax Deductions per Pay Period: $150 (e.g., health insurance)
• Estimated Tax Withholding (%): 20%
• Post-tax Deductions per Pay Period: $50 (e.g., Roth 401k contribution)

1. Gross Biweekly Pay:

• Regular weekly pay: 40 hours * $25/hour = $1000
• Overtime weekly pay: 5 hours * $25/hour * 1.5 = $187.50
• Total weekly pay: $1000 + $187.50 = $1187.50
• Gross Biweekly Pay: $1187.50 * 2 = $2375.00

2. Taxable Income:

• $2375.00 (Gross Pay) – $150.00 (Pre-tax Deductions) = $2225.00

3. Estimated Taxes Withheld:

• $2225.00 (Taxable Income) * 20% = $445.00

4. Net Biweekly Pay:

• $2225.00 (Taxable Income) – $445.00 (Estimated Taxes) – $50.00 (Post-tax Deductions) = $1730.00

In this example, the employee's net biweekly pay would be $1730.00.