Payroll Calculator
Calculate payroll taxes, deductions, and net pay for employees. Essential tool for small business owners and HR professionals to estimate payroll costs accurately.
Payroll Results
| Gross Pay | $5,000.00 |
|---|---|
| Pre-Tax Deductions | $350.00 |
| Taxable Income | $4,650.00 |
| Federal Income Tax | $465.00 |
| Social Security Tax | $288.30 |
| Medicare Tax | $67.43 |
| State Income Tax | $139.50 |
| Post-Tax Deductions | $100.00 |
| Net Pay | $3,589.77 |
About Payroll Calculator
The Payroll Calculator helps businesses and individuals estimate payroll taxes, deductions, and net pay. This tool is essential for small business owners, HR professionals, and employees to understand their take-home pay and payroll obligations.
How to Calculate Payroll
To calculate payroll taxes and net pay:
- Enter pay frequency: Select how often the employee is paid (weekly, bi-weekly, monthly, etc.)
- Enter gross pay: The total earnings before any deductions
- Select filing status: Choose the appropriate federal tax filing status
- Enter allowances: Number of federal and state tax allowances
- Select state: Choose the state for state income tax calculation
- Add deductions: Include any pre-tax and post-tax deductions
- Calculate: View the detailed breakdown of taxes and net pay
Payroll Components
Gross Pay: The total earnings before any deductions or taxes.
Pre-Tax Deductions: Amounts subtracted from gross pay before taxes are calculated (e.g., 401(k), health insurance).
Taxable Income: Gross pay minus pre-tax deductions - the amount subject to income taxes.
Federal Income Tax: Calculated based on IRS tax brackets and the employee's filing status.
Social Security Tax: 6.2% of taxable income up to the annual wage base limit.
Medicare Tax: 1.45% of all taxable income (additional 0.9% for high earners).
State Income Tax: Varies by state, calculated based on state tax brackets.
Post-Tax Deductions: Amounts subtracted after taxes are calculated (e.g., wage garnishments).
Net Pay: The amount the employee takes home after all deductions and taxes.
Why Payroll Calculation Matters
Accurate payroll calculation ensures compliance with tax laws, helps businesses budget effectively, and allows employees to understand their compensation. Different pay frequencies, tax statuses, and deductions can significantly impact take-home pay. This calculator provides a clear breakdown to help all parties understand payroll obligations.