- Pay period
- This is how often you are paid. Your selections are: Weekly (52
paychecks per year), Every other week (26 paychecks per year),
Twice a month (24 paychecks per year), Monthly (12 paychecks per
year), and Annually (one paycheck per year).
- Gross pay
- This is your gross pay, before any deductions, for the pay
period. Please enter a dollar amount from $1 to $1,000,000.
- Filing status
- This is your income tax filing status. The choices are "Single"
and "Married". Choose "Married" if you are married or file as "head
of household". Choose "Single" if you file your taxes as a single
person or if you are married but file separately.
- Number of allowances
- When your Federal income tax withholdings are calculated, you
are allowed to claim allowances to reduce the amount of the Federal
income tax withholding. In 2008, each allowance you claim is equal
to $3,500 of income that you expect to have in deductions when you
file your annual tax return. The number of allowances you should
claim depends largely on the number of dependents you have and your
itemized deductions. This calculator allows from 0 to 99
allowances.
- 401(k)/403(b) plan withholding
- This is the percent of your gross income you put into a taxable
deferred retirement account such as a 401(k) or 403(b). While
increasing your retirement account savings does lower your take
home pay, it also lowers your Federal income tax withholdings. The
impact on your paycheck might be less than you think. While your
plan may not have a deferral percentage limit, this calculator
limits deferrals to 80% to account for FICA (Social Security and
Medicare) taxes. Please note that your 401(k) or 403(b) plan
contributions may be limited to less than 80% of your income. Check
with your plan administrator for details. For 2008, the maximum
contribution to a 401(k) or 403(b) is $15,500 per year for
individuals under 50 and $20,500 for individuals 50 or older.
- State and Local Taxes
- This is the percentage that will be deducted for state and
local taxes. We take your gross pay, minus $3,500 per allowance,
times this percentage to calculate your estimated state and local
taxes. Please note, this calculator can only estimate your state
and local withholdings.
- Post-tax deductions
- Enter any payroll deductions made by your employer that are
made with after tax income.
- Post-tax reimbursements
- Enter any reimbursements made by your employer that are after
tax.
- FICA OASDI
- FICA Old Age Survivors and Disability Insurance. FICA OASDI is
calculated as your gross earnings times 6.2%. Please note that this
calculator does not make any assumptions as to the total FICA OASDI
paid for the current year. For 2008, incomes over $102,000 that
have already had the maximum FICA OASDI amount of $6,324.00
withheld will not have additional FICA OASDI withholdings.
- FICA Medicare
- FICA Medicare is calculated as the gross earnings times 1.45%.
Unlike FICA OASDI there is no annual limit to FICA Medicare
deductions.
- Federal tax withholding
calculations
- Federal income tax withholdings were calculated by:
- Multiplying taxable gross wages by the number of pay periods
per year to compute your annual wage.
- Subtracting the value of allowances allowed (for 2008, this is
$3,500 multiplied by withholding allowances claimed).
- Determining your annual tax by using the tables below (single
and married rates, respectively).
- Dividing the amount of tax by the number of pay periods per
year to arrive at the amount of federal withholding tax to be
deducted per pay period.
Single Withholding Rates*
|
Annual taxable income between these amounts
|
Annual withholding
|
Withhold additional % of income over this amount
|
|
$0.00
|
$2,650.00
|
$0.00
|
|
|
|
$2,650.00
|
$10,300.00
|
$0.00
|
10%
|
$2,650.00
|
|
$10,300.00
|
$33,960.00
|
$765.00
|
15%
|
$10,300.00
|
|
$33,960.00
|
$79,725.00
|
$4,314.00
|
25%
|
$33,960.00
|
|
$79,725.00
|
$166,500.00
|
$15,755.25
|
28%
|
$79,725.00
|
|
$166,500.00
|
$359,650.00
|
$40,052.25
|
33%
|
$166,500.00
|
|
$359,650.00
|
(no limit)
|
$103,791.75
|
35%
|
$359,650.00
|
|
|
Married Withholding Rates*
|
Annual taxable income between these amounts
|
Annual withholding
|
Withhold additional % of income over this amount
|
|
$ 0.00
|
$ 8,000.00
|
$0.00
|
|
|
|
$ 8,000.00
|
$ 23,550.00
|
$0.00
|
10%
|
$ 8,000.00
|
|
$ 23,550.00
|
$ 72,150.00
|
$1,555.00
|
15%
|
$ 23,550.00
|
|
$ 72,150.00
|
$137,850.00
|
$8,845.00
|
25%
|
$72,150.00
|
|
$137,850.00
|
$207,700.00
|
$25,270.00
|
28%
|
$137,850.00
|
|
$207,700.00
|
$365,100.00
|
$44,828.00
|
33%
|
$207,700.00
|
|
$365,100.00
|
(no limit)
|
$96,770.00
|
35%
|
$365,100.00
|
|
|
|
