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A new paycheck calculator web application has been released recently.  This app utilizes XML, PHP and the latest HTML standards to provide users a rich, intuitive interface.  The calculator provides users a means to determine all paycheck withholding to find net take-home pay after all taxes have been deducted.

For questions about your paycheck, use a paycheck calculator to double check your employer’s calculations.  Compare tax computations and deductions to see if the net income figure is the same as the figures on your actual paycheck stub. The paycheck calculator will require the input of your gross salary, the state where you earn money, your marital status, the number of allowances you claim, the deductions you take from your paycheck such as retirement savings and insurance.  Some deductions are tax exempt and you will need to know if those deductions are tax exempt.  When all that information is entered into the paycheck calculator, it will begin its computations.

Do you know what federal taxes you are required to pay?  It should be between 10 -35 percent of your gross pay.  On state taxes, it depends on the state and some states offer different rates depending on the amount of money you earn.  Georgia state charges 1-6 percent taxes on income: 1% on income $750 or less and 6% on income $7000 or above.  California gets 2% on incomes between $7000 and $14,000 and 10.3% on incomes above $1 million.  A paycheck calculator will compute your state tax rate for you.  You should check the state’s tax rate just so you know what the rate actually is.  Local taxes are dependent on where you live.  Some areas do not collect income taxes, while many other do.  Check with your local government to determine if taxes are required and determine what the rate is, so it can be entered into the paycheck calculator for the most accurate results.  Medicare taxes are always 1.45% for employed people and 2.49% for self-employed people.  FICA is always 6.3% for employed people and 12.4% for self-employed persons.

The paycheck calculator will ask what you marital status is as this helps determine how your income is calculated.  Adding an additional allowance makes the average $1000 weekly paycheck increases by $16.  That’s not a lot of money but it does make a difference.  The period of pay can be daily, weekly, biweekly or semi-monthly.  Bi-weekly means every two weeks, pay is generated.  Semi-monthly means the pay period divides a month into two periods and a check is issued on the 1-3 of the month and a second check is issued from the 14-16 of the month.  Checks are also issued monthly, quarterly and annually.  The paycheck calculator will calculate the check depending on the frequency of the pay period, no matter what the period is, as long as it is a consistent time frame.

Withholdings, personal allowances, dependent allowances and other deductions must be included in the paycheck calculations.  Withholdings include any elected amounts the person wants taken out of their checks.   Personal allowances are the amounts deducted for the persons you are claiming on your taxes.  Dependent allowances include anyone, including children or parents who you support and include on your tax return.  Deductions include insurance costs that you pay and retirement savings or other savings plans.  Some people have bill payments deducted from their pay checks.  In the deductions category, you will be asked if the deductions are tax exempt.  Select exempt from federal, state, local or FIDA.  Retirement savings are often exempt from federal, state, and local taxes. 

The paycheck calculator is a good way to confirm the amount of money you should be receiving in your pay check.  After inputting data for the gross salary, filing status, federal allowances, dependents and deductions, use the paycheck calculator.  Knowing what to expect in take home pay gives you the best chance to develop a budget from which to manage your household finances. Use the paycheck calculator to determine your net income, so you will be able to afford the lifestyle you planned with your budget.