PayCity Payroll Calculator
Use this calculator to estimate your net pay per pay period after common deductions. Enter your gross pay, pay frequency, and estimated tax withholding percentages, along with any pre-tax and post-tax deductions.
Bi-Weekly (26 periods/year)
Weekly (52 periods/year)
Semi-Monthly (24 periods/year)
Monthly (12 periods/year)
e.g., 401k contributions, health insurance premiums
e.g., union dues, garnishments
Payroll Summary per Period:
Gross Pay: $0.00
Pre-Tax Deductions: $0.00
Taxable Gross Pay: $0.00
Federal Income Tax: $0.00
State Income Tax: $0.00
Social Security Tax (6.2%):
Medicare Tax (1.45%): $0.00
Post-Tax Deductions: $0.00
Total Deductions: $0.00
Net Pay: $0.00
Understanding Your PayCity Payroll: Gross vs. Net Pay
Navigating your paycheck can sometimes feel like deciphering a secret code. The PayCity Payroll Calculator is designed to demystify this process, helping you understand how your gross earnings transform into the net pay you actually take home. Understanding the components of your pay is crucial for personal budgeting, financial planning, and ensuring the accuracy of your compensation.
What is Gross Pay?
Your Gross Pay is the total amount of money you earn before any deductions are taken out. This includes your regular salary or hourly wages, overtime pay, bonuses, commissions, and any other forms of compensation. It's the headline number of your earnings, but not what lands in your bank account.
What is Net Pay?
Net Pay, often referred to as "take-home pay," is the amount of money you receive after all mandatory and voluntary deductions have been subtracted from your gross pay. This is the figure that truly impacts your daily finances and budget.
Common Payroll Deductions Explained
The difference between your gross and net pay is made up of various deductions. These can be broadly categorized into mandatory deductions (required by law) and voluntary deductions (chosen by you).
Mandatory Deductions:
- Federal Income Tax: This is money withheld from your paycheck and sent to the federal government to fund public services. The amount withheld depends on your gross pay, filing status (e.g., single, married), and the allowances you claim on your W-4 form. Our calculator uses a percentage for simplification, but actual withholding is based on tax tables.
- State Income Tax: Similar to federal tax, many states also levy an income tax. The rates and rules vary significantly by state, and some states have no state income tax at all.
- Social Security Tax (FICA): This is part of the Federal Insurance Contributions Act (FICA). The employee portion is currently 6.2% of your gross wages, up to an annual wage base limit (which changes yearly). These funds contribute to retirement, disability, and survivor benefits.
- Medicare Tax (FICA): Also part of FICA, the employee portion for Medicare is currently 1.45% of all your gross wages, with no wage base limit. This tax helps fund health care for the elderly and disabled.
Voluntary Deductions:
- Pre-Tax Deductions: These are deductions taken from your gross pay *before* income taxes are calculated, effectively reducing your taxable income. Common examples include contributions to a 401(k) or 403(b) retirement plan, health insurance premiums, dental insurance, and Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs).
- Post-Tax Deductions: These deductions are taken from your pay *after* all taxes have been calculated and withheld. Examples include Roth 401(k) contributions, union dues, charitable contributions, wage garnishments, or certain types of life insurance premiums.
How to Use the PayCity Payroll Calculator
Our calculator simplifies the complex payroll process into a few easy steps:
- Gross Pay per Period: Enter your total earnings for one pay period (e.g., bi-weekly, monthly).
- Pay Frequency: Select how often you get paid (e.g., weekly, bi-weekly, monthly). While this calculator doesn't directly use frequency for calculations, it helps you contextualize your "per period" inputs.
- Federal & State Tax Withholding (%): Input your estimated federal and state income tax withholding percentages. If you're unsure, you can use a general estimate or consult your last pay stub.
- Pre-Tax Deductions per Period: Enter the total amount of deductions taken before taxes, such as 401(k) contributions or health insurance.
- Post-Tax Deductions per Period: Input any deductions taken after taxes, like union dues.
- Calculate Net Pay: Click the button to see a detailed breakdown of your gross pay, all deductions, and your final net pay.
Important Considerations
- Estimates Only: This calculator provides an estimate. Actual payroll calculations can be more complex, involving specific tax tables, additional local taxes, and varying state laws.
- Wage Base Limits: For Social Security, there's an annual wage base limit. Our calculator applies the percentage to the entered gross pay per period for simplicity, but a real payroll system would stop withholding SS tax once the annual limit is reached.
- Tax Brackets: Federal and state income taxes are often progressive, meaning different portions of your income are taxed at different rates (tax brackets). Our calculator uses a flat percentage for simplicity, which might not perfectly reflect your exact withholding.
By using the PayCity Payroll Calculator, you gain a clearer picture of your earnings and deductions, empowering you to manage your finances more effectively.