Free Paycheck Calculator
Hourly & Salary 2022
This take-home paycheck calculator estimates your net pay after adding or deducting things like bonuses, overtime, and federal taxes.
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Pay Schedule
Filing Status
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Breakdown
Salary / Gross Pay
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Taxes and deductions
Federal
$0.00
Social Security
6.2%
-$0.00
Medicare
1.45%
-$0.00
Net Pay:
$0.00
How to calculate taxes on your paycheck
There are two main components to what is withheld from your paycheck:
- 1. Federal Income Tax Withholding
- 2. FICA Withholding
Federal Income Tax Withholding
Essentially, federal tax withholding is when your employer takes a certain amount of money out of your paycheck for taxes and sends it to the federal government on your behalf. Most employees are subject to withholding tax. Your employer is the one responsible for sending it to the IRS. In order to be exempt from tax withholding, you must have owed no federal income tax in the prior tax year and you must not expect to owe any federal income tax this tax year.
FICA Withholding
What is FICA tax? FICA tax includes a 6.2% Social Security tax and 1.45% Medicare tax on earnings. It is the other central federal part of your paycheck withholding. FICA stands for the Federal Insurance Contributions Act.
Why do I have to pay FICA tax?
Your FICA taxes are your contribution to the Social Security and Medicare programs you'll have access to when you're a senior. The idea is that over the course of your time working, you save up money through the FICA that will be distributed to you when you're a senior. For more information on FICA, you can visit the Social Security Administration's website which has alot more detail.
What is a Form W-4?
A W-4 form, which is typically titled "Employee's Withholding Certificate," is an IRS form that tells employers how much tax to withhold from each paycheck. When you fill out this form you are helping your employer know what they need to withhold from your paycheck. It helps them calculate payroll taxes and then pass them on to the IRS.
If you already have a W-4 on file with your employer then you do not have to fill out the new form when your change positions internally. You also don't have to fill out a new W-4 every year. If you start a new job or want to adjust your withholdings at your existing job, though, you'll likely need to fill out the new W-4. Your W-4 is used to help calculate your paycheck.