function calculatePaycheck() {
var grossPayPerPeriod = parseFloat(document.getElementById('grossPayInput').value);
var payFrequency = document.getElementById('payFrequencyInput').value;
var federalTaxPercentage = parseFloat(document.getElementById('federalTaxPercentageInput').value);
var stateTaxPercentage = parseFloat(document.getElementById('stateTaxPercentageInput').value);
var preTaxDeductions = parseFloat(document.getElementById('preTaxDeductionsInput').value);
var postTaxDeductions = parseFloat(document.getElementById('postTaxDeductionsInput').value);
// Validate inputs
if (isNaN(grossPayPerPeriod) || grossPayPerPeriod < 0) {
document.getElementById('paycheckResult').innerHTML = 'Please enter a valid Gross Pay.';
return;
}
if (isNaN(federalTaxPercentage) || federalTaxPercentage 100) {
document.getElementById('paycheckResult').innerHTML = 'Please enter a valid Federal Tax Percentage (0-100).';
return;
}
if (isNaN(stateTaxPercentage) || stateTaxPercentage 100) {
document.getElementById('paycheckResult').innerHTML = 'Please enter a valid State Tax Percentage (0-100).';
return;
}
if (isNaN(preTaxDeductions) || preTaxDeductions < 0) {
document.getElementById('paycheckResult').innerHTML = 'Please enter a valid amount for Pre-Tax Deductions.';
return;
}
if (isNaN(postTaxDeductions) || postTaxDeductions < 0) {
document.getElementById('paycheckResult').innerHTML = 'Please enter a valid amount for Post-Tax Deductions.';
return;
}
// FICA Taxes (Social Security and Medicare)
var socialSecurityRate = 0.062; // 6.2%
var medicareRate = 0.0145; // 1.45%
var socialSecurityTax = grossPayPerPeriod * socialSecurityRate;
var medicareTax = grossPayPerPeriod * medicareRate;
// Taxable Income (Gross Pay – Pre-Tax Deductions)
var taxableIncome = grossPayPerPeriod – preTaxDeductions;
if (taxableIncome < 0) {
taxableIncome = 0; // Taxable income cannot be negative
}
// Federal and State Income Taxes
var federalTax = taxableIncome * (federalTaxPercentage / 100);
var stateTax = taxableIncome * (stateTaxPercentage / 100);
// Total Deductions
var totalDeductions = socialSecurityTax + medicareTax + federalTax + stateTax + preTaxDeductions + postTaxDeductions;
// Net Pay
var netPayPerPeriod = grossPayPerPeriod – totalDeductions;
// Display Results
var resultHTML = '
Your paycheck is more than just a number; it's a detailed breakdown of your earnings and the various deductions that reduce your gross income to your net take-home pay. Understanding each component is crucial for financial planning, budgeting, and ensuring your withholdings are accurate. Our Smart Paycheck Estimator helps you visualize this process.
What is Gross Pay?
Gross pay is the total amount of money you earn before any taxes or deductions are taken out. This includes your regular salary or hourly wages, as well as any overtime, bonuses, commissions, or tips. It's the starting point for all paycheck calculations.
Key Paycheck Deductions Explained
While gross pay is what you earn, net pay is what you actually receive. The difference comes from various deductions, which can be categorized into mandatory and voluntary:
1. Federal Income Tax
This is a mandatory tax levied by the U.S. government on your earnings. The amount withheld depends on your taxable income, filing status (e.g., Single, Married Filing Jointly), and the information you provide on your W-4 form. Our calculator uses a percentage you provide for estimation, as actual federal tax calculation involves complex tax brackets and allowances.
2. State Income Tax
Most states also levy an income tax. Like federal tax, the amount withheld depends on your state's tax laws, your income, and your filing status. Some states have flat tax rates, while others use progressive systems. A few states have no state income tax at all.
3. FICA Taxes (Social Security and Medicare)
The Federal Insurance Contributions Act (FICA) mandates two taxes:
Social Security Tax: This funds retirement, disability, and survivor benefits. Employees typically pay 6.2% of their gross wages up to an annual income limit (e.g., $168,600 for 2024).
Medicare Tax: This funds health insurance for the elderly and disabled. Employees typically pay 1.45% of all gross wages, with no income limit.
Together, these are often referred to as payroll taxes.
4. Pre-Tax Deductions
These are deductions taken from your gross pay *before* income taxes (federal and state) are calculated. This reduces your taxable income, which can lower your overall tax liability. Common pre-tax deductions include:
401(k) or 403(b) Contributions: Retirement savings plans.
Health Insurance Premiums: Your share of the cost for employer-sponsored health coverage.
Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs): Accounts for healthcare expenses.
Commuter Benefits: Funds set aside for public transit or parking.
5. Post-Tax Deductions
These deductions are 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: Retirement savings where contributions are taxed now, but withdrawals in retirement are tax-free.
Union Dues: Fees paid to a labor union.
Garnishments: Court-ordered deductions for debts like child support or student loans.
Charitable Contributions: Deductions for donations made directly from your paycheck.
How Our Paycheck Estimator Works
Our calculator simplifies the complex process of paycheck calculation. You input your gross pay per period, your pay frequency, estimated federal and state tax withholding percentages, and any pre-tax or post-tax deductions. The calculator then:
Calculates mandatory FICA taxes (Social Security and Medicare).
Determines your taxable income by subtracting pre-tax deductions from your gross pay.
Applies your specified federal and state income tax percentages to your taxable income.
Sums up all deductions (FICA, federal tax, state tax, pre-tax, and post-tax).
Subtracts total deductions from your gross pay to give you your estimated net pay.
Why Use a Paycheck Calculator?
Budgeting: Know exactly how much money you'll have available for expenses and savings.
Tax Planning: Adjust your withholdings to avoid overpaying or underpaying taxes throughout the year.
Understanding Benefits: See the impact of retirement contributions, health insurance, and other benefits on your take-home pay.
Job Offers: Compare net pay from different job offers, not just gross salaries.
Remember, this calculator provides an estimate. For precise figures, always refer to your official pay stubs or consult with a financial advisor or tax professional.