Federal Paycheck Calculator
Federal Paycheck Quick Facts
- Federal income tax rates range from 10% up to a top marginal rate of 37%.
- The U.S. median household income in 2020 was $67,340.
- 9 U.S. states don't impose their own income tax for tax year 2022.
How Your Paycheck Works: Income Tax Withholding
When you start a new job or get a raise, you’ll agree to either an hourly wage or an annual salary. But calculating your weekly take-home pay isn’t a simple matter of multiplying your hourly wage by the number of hours you’ll work each week, or dividing your annual salary by 52. That’s because your employer withholds taxes from each paycheck, lowering your overall pay. Because of the numerous taxes withheld and the differing rates, it can be tough to figure out how much you’ll take home. That’s where our paycheck calculator comes in.
Tax withholding is the money that comes out of your paycheck in order to pay taxes, with the biggest one being income taxes. The federal government collects your income tax payments gradually throughout the year by taking directly from each of your paychecks. It's your employer's responsibility to withhold this money based on the information you provide in your Form W-4. You have to fill out this form and submit it to your employer whenever you start a new job, but you may also need to re-submit it after a major life change, like a marriage.
If you do make any changes, your employer has to update your paychecks to reflect those changes. Most people working for a U.S. employer have federal income taxes withheld from their paychecks, but some people are exempt. To be exempt, you must meet both of the following criteria:
- In the previous tax year, you received a refund of all federal income tax withheld from your paycheck because you had zero tax liability.
- This year, you expect to receive a refund of all federal income tax withheld because you expect to have zero tax liability again. If you think you qualify for this exemption, you can indicate this on your W-4 Form.
Federal Top Income Tax Rate
When it comes to tax withholdings, employees face a trade-off between bigger paychecks and a smaller tax bill. It's important to note that while past versions of the W-4 allowed you to claim allowances, the current version doesn't. Additionally, it removes the option to claim personal and/or dependency exemptions. Instead, filers are required to enter annual dollar amounts for things such as total annual taxable wages, non-wage income and itemized and other deductions. The new version also includes a five-step process for indicating additional income, entering dollar amounts, claiming dependents and entering personal information.
One way to manage your tax bill is by adjusting your withholdings. The downside to maximizing each paycheck is that you might end up with a bigger tax bill if, come April, you haven't had enough withheld to cover your tax liability for the year. That would mean that instead of getting a tax refund, you would owe money.
If the idea of a big one-off bill from the IRS scares you, then you can err on the side of caution and adjust your withholding. Each of your paychecks may be smaller, but you’re more likely to get a tax refund and less likely to have tax liability when you fill out your tax return.
Of course, if you opt for more withholding and a bigger refund, you're effectively giving the government a loan of the extra money that’s withheld from each paycheck. If you opt for less withholding you could use the extra money from your paychecks throughout the year and actually make money on it, such as through investing or putting it in a high-interest savings account. You could also use that extra money to make extra payments on loans or other debt.
When you fill out your W-4, there are worksheets that will walk you through withholdings based on your marital status, the number of children you have, the number of jobs you have, your filing status, whether someone else claims you as your dependent, whether you plan to itemize your tax deductions and whether you plan to claim certain tax credits. You can also fine-tune your tax withholding by requesting a certain dollar amount of additional withholding from each paycheck on your W-4.
A financial advisor can help you understand how taxes fit into your overall financial goals. Financial advisors can also help with investing and financial plans, including retirement, homeownership, insurance and more, to make sure you are preparing for the future.
How Your Paycheck Works: FICA Withholding
In addition to income tax withholding, the other main federal component of your paycheck withholding is for FICA taxes. FICA stands for the Federal Insurance Contributions Act. Your FICA taxes are your contribution to the Social Security and Medicare programs that you’ll have access to when you’re a senior. It’s your way of paying into the system.
FICA contributions are shared between the employee and the employer. 6.2% of each of your paychecks is withheld for Social Security taxes and your employer contributes a further 6.2%. However, the 6.2% that you pay only applies to income up to the Social Security tax cap, which for 2022 is $147,000 (up from $142,800 in 2021). So for 2022, any income you earn above $147,000 doesn’t have Social Security taxes withheld from it. It will still have Medicare taxes withheld, though.
There is no income limit on Medicare taxes. 1.45% of each of your paychecks is withheld for Medicare taxes and your employer contributes another 1.45%. If you make more than a certain amount, you'll be on the hook for an extra 0.9% in Medicare taxes. Here's a breakdown of these amounts:
- $200,000 for single filers, heads of household and qualifying widow(er)s with dependent children
- $250,000 for married taxpayers filing jointly
- $125,000 for married taxpayers filing separately
2021 - 2022 Income Tax Brackets
- Single Filers
- Married, Filing Jointly
- Married, Filing Separately
- Head of Household
|$0 - $9,950||10%|
|$9,950 - $40,525||12%|
|$40,525 - $86,375||22%|
|$86,375 - $164,925||24%|
|$164,925 - $209,425||32%|
|$209,425 - $523,600||35%|
|Married, Filing Jointly|
|$0 - $19,900||10%|
|$19,900 - $81,050||12%|
|$81,050 - $172,750||22%|
|$172,750 - $329,850||24%|
|$329,850 - $418,850||32%|
|$418,850 - $628,300||35%|
|Married, Filing Separately|
|$0 - $9,950||10%|
|$9,950 - $40,525||12%|
|$40,525 - $86,375||22%|
|$86,375 - $164,925||24%|
|$164,925 - $209,425||32%|
|$209,425 - $314,150||35%|
|Head of Household|
|$0 - $14,200||10%|
|$14,200 - $54,200||12%|
|$54,200 - $86,350||22%|
|$86,350 - $164,900||24%|
|$164,900 - $209,400||32%|
|$209,400 - $523,600||35%|
If you work for yourself, you need to pay the self-employment tax, which is equal to both the employee and employer portions of the FICA taxes (15.3% total). Luckily, when you file your taxes, there is a deduction that allows you to deduct the half of the FICA taxes that your employer would typically pay. The result is that the FICA taxes you pay are still only 6.2% for Social Security and 1.45% for Medicare.
How Your Paycheck Works: Deductions
Federal income tax and FICA tax withholding are mandatory, so there’s no way around them unless your earnings are very low. However, they’re not the only factors that count when calculating your paycheck. There are also deductions to consider.
For example, if you pay any amount toward your employer-sponsored health insurance coverage, that amount is deducted from your paycheck. When you enroll in your company’s health plan, you can see the amount that is deducted from each paycheck. If you elect to contribute to a Health Savings Account (HSA) or Flexible Spending Account (FSA) to help with medical expenses, those contributions are deducted from your paychecks too.
Also deducted from your paychecks are any pre-tax retirement contributions you make. These are contributions that you make before any taxes are withheld from your paycheck. The most common pre-tax contributions are for retirement accounts such as a 401(k) or 403(b). So if you elect to save 10% of your income in your company’s 401(k) plan, 10% of your pay will come out of each paycheck. If you increase your contributions, your paychecks will get smaller. However, making pre-tax contributions will also decrease the amount of your pay that is subject to income tax. The money also grows tax-free so that you only pay income tax when you withdraw it, at which point it has (hopefully) grown substantially.
Some deductions from your paycheck are made post-tax. These include Roth 401(k) contributions. The money for these accounts comes out of your wages after income tax has already been applied. The reason to use one of these accounts instead of an account taking pre-tax money is that the money in a Roth IRA or Roth 401(k) grows tax-free and you don’t have to pay income taxes when you withdraw it (since you already paid taxes on the money when it went in). If you are early in your career or expect your income level to be higher in the future, this kind of account could save you on taxes in the long run.
How Your Paycheck Works: Pay Frequency
Some people get monthly paychecks (12 per year), while some are paid twice a month on set dates (24 paychecks per year) and others are paid bi-weekly (26 paychecks per year). The frequency of your paychecks will affect their size. The more paychecks you get each year, the smaller each paycheck is, assuming the same salary.
How Your Paycheck Works: Local Factors
If you live in a state or city with income taxes, those taxes will also affect your take-home pay. Just like with your federal income taxes, your employer will withhold part of each of your paychecks to cover state and local taxes.
How do I know my take home salary? ›
Take Home Salary = Gross Salary - Income Tax - Employee's PF Contribution(PF) - Prof. Tax. Gross Salary = Cost to Company (CTC) - Employer's PF Contribution (EPF) - Gratuity. Gratuity = (Basic salary + Dearness allowance) × 15/26 × No. of Years of Service.How do you calculate weekly pay? ›
Examples. If you generally worked five days per week, your AWW will be set by dividing your total salary by the total number of days paid, then multiplying the result by 260, and dividing that total by 52.How do you calculate biweekly pay? ›
In a year of 52 weeks, biweekly paychecks go out 26 times. To figure out the gross biweekly pay for a salaried employee, divide their annual pay by 26; if they make $52,000, for instance, the gross pay is $2,000 every two weeks. Subtract withholding and deductions from that amount to get biweekly net pay.How do you calculate payroll payments? ›
- 40 hours worked at regular rate of $15 per hour: 40 x 15 = $600.
- Six hours worked at overtime rate of $22.5 per hour: 6 x 22.5 = $135.
- Total Gross Pay for the week: $600 + $135 = $735.
How much is 18 dollars an hour per week? 18 dollars an hour at 40 hours a week is $720 per week (before taxes) and around $611 per week after taxes. $18 dollars an hour at 25 hours a week (part-time) is $450 per week (before taxes) and about $394 after taxes.How much is $45 an hour weekly? ›
$45 an hour multiplied by 40 hours per week is $1,800 per week income.How do I calculate how much I get paid an hour? ›
In order to calculate an hourly rate based upon your monthly salary, multiply your monthly figure by 12 and then divide it by the number of hours you work per week. Divide this resulting figure by the number of paid weeks you work each year to get your hourly rate.How much is $15 an hour biweekly? ›
How much is $15 an hour biweekly? If you work 40 hours a week (full-time) at $15 an hour, you'll make $1,200 biweekly. Your take-home pay would be about $1060 every other week.How much is $45 biweekly? ›
When looking at how much $45,000 a year is biweekly in your paycheck, you simply need to calculate how much you would earn over every two weeks. If you assume a full-time position with no overtime and exactly 40 hours per week, then you would earn $45,000 / 26 bi-weekly pay periods = $1,730.77 per biweekly paycheck.How much is $11 an hour biweekly? ›
|Time||Full Time (40H/week)|
|Annual salary||$11 per hour is $22,880 yearly|
|Monthly wage||$11 per hour is $1,907 monthly|
|Biweekly wage||$11 per hour is $880 biweekly|
|Weekly wage||$11 per hour is $440 weekly|
How is basic salary and gross salary calculated? ›
Gross salary = Basic salary + HRA (House rent allowance) + DA (dearness allowance) + MA (medical allowance)How do you calculate hours and minutes for payroll? ›
- Take your number of minutes and divide by 60. In this example your partial hour is 15 minutes: ...
- Add your whole hours back in to get 41.25 hours. So 41 hours, 15 minutes equals 41.25 hours.
- Multiply your rate of pay by decimal hours to get your total pay before taxes.
$19 an hour multiplied by 40 hours per week is $760 per week income.How much is $15 an hour 30 hours a week? ›
$15 hourly is how much per week? If you make $15 per hour, your Weekly salary would be $563.How much a week is $20 an hour? ›
$20 hourly is how much per week? If you make $20 per hour, your Weekly salary would be $750. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 37.5 hours a week.How much is $300 a week per hour? ›
If you make $300 per week, your hourly salary would be $8. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 37.5 hours a week.What is $25 an hour per week? ›
So if you make $1,000 a week that would be $25 per hour.How much is $27 an hour 40 hours a week? ›
How Much Is $27 An Hour Per Week? If you want to break it out by week, let's assume your working a normal 40-hour week. So to calculate your weekly income, see below: $27 an hour multiplied by 40 hours per week is $1,080 per week income.What salary is $45 per hour? ›
If you make $45 per hour, your Yearly salary would be $87,750. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 37.5 hours a week.What is $21 an hour every two weeks? ›
Assuming you are working 40 hours a week, two weeks of work would be 80 hours. Biweekly you would be making $21 multiplied by 80 hours which is $1680. You will $1680 biweekly.
How much is $21 per hour a week? ›
$21 an hour multiplied by 40 hours per week is $840 per week income.What is $20 an hour annually? ›
To figure out how much $20 an hour is per year, multiply $20 by how many hours you work per week. For most full-time jobs, that's 40 hours per week or 2,080 hours per year, if you don't take any time off. That means $20 an hour is $41,600 a year.How much is $18 an hour * 8? ›
$18 an hour multiplied by 8 hours per day is $144 per day income.How much is $22 an hour annually? ›
If you make $22 per hour, your Yearly salary would be $42,900.Is 50$ an hour good? ›
Yes, $50 an hour is actually good pay. To put things into perspective, $50 an hour is almost seven times higher than the federal minimum wage. As of 2022, the Federal minimum wage is $7.25 per hour. Here's another example - if you live in New York, the minimum wage as of 2022 is $13.20.How much is $1200 a week per hour? ›
$1,200 weekly is how much per hour? If you make $1,200 per week, your hourly salary would be $32. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 37.5 hours a week.How much is $22 an hour Biweekly? ›
|Time||Full Time (40H/week)|
|Annual salary||$22 per hour is $45,760 yearly|
|Monthly wage||$22 per hour is $3,813 monthly|
|Biweekly wage||$22 per hour is $1,760 biweekly|
|Weekly wage||$22 per hour is $880 weekly|
After taxes, if you earn $17 an hour, you'll take home $26,520 a year. Your gross salary before taxes would be $35,360. This is a livable wage for a single person in a low to moderate cost of living area. It may be tough to save money or pay off debts if you have a family on this wage.Is Excel Good for payroll? ›
Excel is considered a great tool for payroll management as it is easy to use and versatile. Additionally, it has several functions that allow for simple calculations within seconds. Its simple layout also allows for visual representations of the payroll data.What is the cheapest way to run payroll? ›
- Intuit Payroll. If you are looking for the payroll service for barebones, then this is the right solution for you. ...
- Onpay. One top-secret of OnPay is that it does not offer the payroll tools and services offered by Intuit. ...
- Gusto. ...
- Namely. ...
Which company calculator is best? ›
- Texas Instruments.
The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total. Combined, the FICA tax rate is 15.3% of the employee's wages.How do you do payroll in Excel for beginners? ›
Step 1: Open a new blank excel spreadsheet. Go to Search Box. Type “Excel” and double click on the match found under the search box to open a blank excel file. Step 2: Save the file on the location you want your payroll to be saved so that it does not get lost, and you will always have it with you.What document that you need to prepare payroll? ›
Whenever you hire a new employee, you both need to complete federal I-9 forms. This form shows that your new employee is legally allowed to work in the United States. New employees must also complete federal W-4 forms. Your employee will list their income and family information.Do accountants use Excel a lot? ›
For financial insight and analysis, crunching numbers and compiling non-numerical data, Excel continues to be the tool of choice throughout the accounting and finance field. Having made its debut in 1985, Excel remains a mainstay in most industries, despite rampant technological changes.How can I do payroll myself for free? ›
The EFTPS is a free payment system that lets you do just that, by allowing you to pay both your federal payroll taxes and federal unemployment taxes right from your computer. If you're using a payroll service, then you can skip this step since they'll send in your tax payments for you.What is the easiest payroll program? ›
QuickBooks earns our nod for the easiest setup because its user interface is so intuitive for anyone familiar with QuickBooks. In addition to customer service, there are ample resources online to get anyone on board with their payroll services.Can I run my own payroll? ›
In short, you shouldn't run payroll by yourself.
It's that plus withholding federal, state and local taxes, sending those tax payments to the IRS and your state, and filing your tax forms on time. Even if your business is just you, all of those things still apply.
Texas Instruments TI-84 Plus graphing calculator
The TI-84 Plus is one of the most popular graphing calculators on the market; it's been a mainstay in school math class rooms for decades. It boats a 4.7-star rating with more than 13,000 reviews on Amazon.
Most of you probably need a rather simple calculator app, while others require something more advanced. Now, for the vast majority of people, Google's very own solution is a great choice.
How much do I pay in taxes if I make 1000 a week? ›
If you earn $1,000 per week in gross pay, you'll pay $1,000 X . 765, or $76.50 per week toward FICA.What is the federal payroll tax rate for 2022? ›
For 2022, the Social Security tax wage base for employees will increase to $147,000. The Social Security tax rate for employees and employers remains unchanged at 6.2%. The combined Social Security and Medicare tax rate for employees and employers remains unchanged at 7.65%.What are the two most important payroll taxes? ›
Payroll Taxes Fund Social Security and Medicare
The two main federal payroll taxes levied on wages are known as Federal Insurance Contributions Act (FICA) taxes.