Hourly Payroll Calculator
Payroll Summary
Total Gross Pay: $0.00
Federal Tax Withheld: $0.00
State Tax Withheld: $0.00
Other Deductions: $0.00
Total Net Pay: $0.00
Understanding Your Hourly Payroll
An hourly payroll calculator is an essential tool for both employees and employers to accurately determine earnings based on an hourly wage. Unlike salaried positions, hourly pay fluctuates directly with the number of hours worked, making precise calculations crucial for financial planning and compliance.
How Hourly Pay Works
Hourly employees are paid a specific rate for each hour they work. This calculator helps break down your total earnings into gross pay, various deductions, and finally, your net pay.
Gross Pay Calculation
Your gross pay is the total amount of money you earn before any deductions are taken out. It typically consists of:
- Regular Pay: Calculated by multiplying your hourly wage by the number of regular hours worked. For example, if you earn $25/hour and work 40 regular hours, your regular pay is $1,000.
- Overtime Pay: For hours worked beyond the standard workweek (often 40 hours in the U.S.), employees are typically paid an overtime rate, which is usually 1.5 times their regular hourly wage (time and a half). If you work 5 overtime hours at $25/hour, your overtime pay would be 5 hours * ($25 * 1.5) = $187.50.
Your total gross pay is the sum of your regular pay and any overtime pay.
Common Payroll Deductions
Once your gross pay is determined, various deductions are subtracted to arrive at your net pay. These can include:
- Federal Tax Withholding: This is the amount of income tax withheld by your employer and sent to the federal government. The amount depends on your gross pay, filing status, and allowances claimed on your W-4 form. Our calculator uses a simple percentage for estimation.
- State Tax Withholding: Similar to federal taxes, many states also require income tax withholding. The rate varies significantly by state, and some states have no state income tax.
- Other Deductions: This category can include a wide range of items such as health insurance premiums, retirement plan contributions (e.g., 401k), union dues, garnishments, or other voluntary deductions.
Net Pay: What You Take Home
Net pay, also known as "take-home pay," is the amount of money you receive after all taxes and other deductions have been subtracted from your gross pay. It's the actual amount that will be deposited into your bank account or issued as a check.
Using the Calculator
To use this calculator, simply input your hourly wage, the number of regular and overtime hours you've worked, and estimated percentages for federal and state tax withholding. You can also add any fixed "other deductions" you might have. The calculator will then provide a detailed breakdown of your gross pay, individual deductions, and your final net pay.
Important Considerations
This calculator provides an estimate. Actual payroll calculations can be more complex due to factors like:
- FICA Taxes: Social Security and Medicare taxes (often around 7.65% for employees) are mandatory federal deductions not included in this simplified calculator.
- Pre-Tax vs. Post-Tax Deductions: Some deductions (like certain retirement contributions or health insurance premiums) are taken out before taxes, reducing your taxable income. This calculator treats all deductions as post-tax for simplicity.
- Specific Tax Brackets: Federal and state income taxes are often progressive, meaning different portions of your income are taxed at different rates. Our calculator uses a flat percentage for estimation.
- Local Taxes: Some cities or counties also impose local income taxes.
Always refer to your official pay stub for the most accurate breakdown of your earnings and deductions.