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Payroll Tax People is happy to provide you with complimentary access to the following payroll calculators. These calculators are intended to provide you with estimates, but are not guaranteed to exactly match results achieved during the actual payroll processing cycle. You are welcome to utilize these tools to calculate manual checks, or just calculate "what if" scenarios.

* If you are a PC Input customer, please use our PC Remote software to calculate and submit checks to be reported with payroll.

The Paycheck Calculator

Here you may calculate your net pay or "take home pay." Take home pay is what is left from your wages after withholdings for taxes and deductions for benefits have been subtracted. Salaried employees can enter either their annual salary or earnings per pay period.

The Hourly Paycheck Calculator

Here you may calculate take home pay based on up to six different hourly pay rates that you enter. This is perfect for those who are paid on a changing hourly basis.

Gross Up Paycheck Calculator

Here you may calculate the gross check based on what you want the net amount to be.

Bonus Aggregate Calculator

Here you may calculate a Bonus check using the aggregate method.

Bonus Percentage Calculator

Here you may calculate a Bonus check using the percentage method.



Allowances or Exemptions

Personal exemptions reduce the employee's taxable income on their Form 1040 (US Individual Income Tax Return). Withholding allowances free approximately the same amount of wages from income tax withholding and therefore approximate the employee's tax liability at the end of the year. Exemptions and allowances may be used synonymously.

An employee is entitled to federal withholding allowances for himself, his spouse, and his dependents. The value of the exemption used by upper income persons is reduced and phased out when adjusted gross income reaches specified levels. Check with your tax professional for definitive advice on allowances/exemptions. Back to top.

Bonus or Supplemental Wages

Bonus or Supplemental wages are compensation paid to an employee in addition to regular wages and include, but are not limited to, bonuses, commissions, overtime pay, accumulated sick leave, severance pay, awards and prizes, back pay, retroactive wage increases, and payments for nondeductible moving expenses. Back to top.

Cafeteria, FSA, and HSA Plans

Cafeteria plans, or flexible benefit plans, FSAs (Flexible Spending Agreements), and (Health Savings Accounts) HSAs are employee benefit plans, authorized by Internal Revenue Code Section 125, under which employees may choose from among two or more benefits (consisting of cash and qualified benefits) offered by an employer. Employee deductions to fund the benefits are exempt from federal income tax, FICA, and, in some states, state income tax, withholding.

Benefits that may be offered under a FSA or cafeteria plan include accident and health insurance, dependent care assistance, group legal services, group term life insurance (with some restrictions), and additional vacation days. Back to top.

Deductions

An amount that is, or may be, subtracted from an employee's paycheck. They can be taken pre-tax or after tax

depending on the type of deduction. The employee must agree to have deductions withheld from their paycheck. Back to top.

Deferred Compensation Plan (401k)

Deferred compensation plans are employee benefit plans, under which employees may contribute a percentage of wages to tax deferred savings plans rather than receive the amounts as current compensation. The most commonly used deferred compensation plan is the 401(k) plan.

Employee contributions to 401(k) plans are exempt from federal income tax and, in some states, state income tax withholding but are not exempt from FICA withholding. Employer contributions, made on behalf of the employee, are also exempt from federal income tax withholding. Contributions and earnings accumulate tax free until distributed to the employee at retirement.

The maximum amount that an employee can elect to defer is adjusted annually for inflation. There are "catch-up" provisions available for employees over the age of 50. Check with your plan administrator for details.  Back to top.

Dependents

To find out who you can claim as a dependent, please Click here to take the online “interview” on the IRS website.

Back to top.

Federal Insurance Contributions Act (FICA)

The taxes imposed under this law fund social security. Every employer is required to match the current social security tax rate imposed the employee's first earnings up to a specified maximum taxable wage, as well as the Medicare tax rate imposed on all of the employee's taxable wages. No credits or withholding exemptions are permitted for the calculation of FICA taxes. When there is more than one employer, each must withhold FICA tax from the employee up to the taxable wage base. Back to top.

Filing or Marital Status (Form W-4)

Single, Married Filing Jointly, Married Filing Separately, Head of Household and Exempt

Employees must indicate their status on, the employer must withhold according to the correct employee table. Back to top.

Garnishment

A garnishment is a court action initiated by a creditor in an effort to obtain a part of an employee's earnings before the earnings are turned over to the employee. Back to top.

Gross Pay

Wages, before necessary taxes and voluntary deductions have been withheld. Back to top.

Net Pay

Also known as Take Home Pay, it is income after necessary deductions and taxes have been withheld. Back to top.

Tips

An employee who receives cash tips in excess of a specified amount in a month must report them to his employer by the 10th day of the following month. Employers are subject to FICA taxes on the reported tip income.

If a tipped employee also earns regular wages, the amount to withhold on tips should be figured as if the tips were a supplemental wage payment. If income tax was withheld from regular wages you may withhold on the tips at a flat rate or you may add them to the regular wages and withhold as if the total were a single wage payment. If income tax was not withheld from regular wages, the supplemental rate may not be used. Back to top.


Category: Paycheck

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