Salary Paycheck Calculator

• 401(k) Calculator: Learn how much you can save for retirement with a 401(k) savings plan
• Solo 401(k) Calculator: See how much your Solo 401(k) contributions now will add up to in retirement.
• Secure Act Tax Credit Calculator: See how much your business can save by starting a 401k retirement plan.
• Stimulus Check Calculator: See how much you can expect from your next stimulus check.

In addition to helping you determine the effect of 401(k) contributions on your take-home pay, a Paycheck Calculator will let you know if you’re deducting the correct amount of money from your check to cover your tax obligation. If you received a significant amount of investment income not subject to withholding, you can elect to have more money withheld from your paycheck, so you’re not hit with a big surprise tax bill due in April.

While a refund at the end of the year can be a welcome bonus, you also don’t want to overpay, as this may unnecessarily stretch your money too thin throughout the year. Keep in mind, you are not earning interest on excess money paid while the IRS hangs onto it. Adjusting your tax withholding can help you welcome a new baby, get married, pay for divorce, or buy a new house.

You may wonder whether it’s worth your while to work overtime this weekend or how many extra hours you’ll need to work in order to afford a big purchase you’re eyeing. To calculate your hourly salary:

• Determine the total number of hours worked by multiplying hours per week by 52 weeks in a year.
• Divide this number by the annual salary.

• Multiply the hourly wage by the number of hours worked per week to estimate your weekly paycheck.
• Multiply this number by the total number of weeks worked in a year to estimate annual salary.

Your employer withholds taxes and other deductions from each individual paycheck, lowering your overall pay. Ubiquity’s weekly paycheck calculator can help you arrive at a precise calculation.

Simply put, dividing the sum of all withholdings by your gross pay will give you the percentage of taxation coming out of your paycheck. To calculate your withholding for the year, take your withholding amount per pay period and multiply it by the number of pay periods for the remainder of the year.

Each paycheck will include deductions for:

• The Federal Insurance Coverage Act (FICA) – which covers Social Security and Medicare.
• Federal tax (which could range from 10 to 37 percent)
• State tax (which could range from 1-10.75 percent)
• Local tax (which could range from 4-10 percent)

There may be additional elective deductions listed for:

• Health insurance
• Retirement accounts
• Flexible spending accounts

Wondering how much you actually make after taxes and deductions?

• Calculate taxable income: subtract voluntary deductions and retirement contributions from gross pay.
• Calculate net income: subtract federal, state, and local taxes from taxable income.

Calculating net income will reveal discrepancies between your perceived salary and your actual paycheck.

Annual income is the total amount that you earn over the course of one year. Most calculations rely on the fiscal calendar year, which runs from October 1 to September 30 of the following year.

Your annual income will include:

• Salary, paid wages, overtime pay, tips, and bonuses
• Self-employment income, freelance earnings, contract work, and sales commissions
• Social security, pension income, welfare, and disability assistance
• Court-ordered alimony and child support payments
• Gained interest and income from investments and savings accounts
• Rental income from properties you’ve owned for more than six months
• Capital gains from asset sales (selling a car, home, stock, or other high value item)

You’ll need a list of all income sources to determine your annual income. The calculator will ask you for:

• Your gross income: the amount of income before taxes and deductions.
• Your net income: the amount of income after taxes and deductions.

In the context of a business, the net income is the profit the company earns after paying all operating costs. This includes all taxes and deductions.

If you haven’t gotten married, had kids, or filed for divorce over the past year, you may not have needed the W4 Form in a long time. If you got a particularly large bill or refund last year, it’s wise to consider adjusting your withholdings.

The W4 lets you adjust your withholdings based on:

• Your marital status
• How many dependents you’re supporting
• Whether you or your spouse work additional jobs
• Additional income you have (like retirement income or dividends) that is not subject to withholding
• A desire to withhold more or less

Changes to this form in 2020 were designed to make withholdings more accurate, so it’s worth revisiting your form if you haven’t already.

We hope you liked this handy and free Salary Paycheck Calculator tool. Ubiquity is a leading provider of 401(k) plans geared toward self-employed individuals and small businesses. We can help you choose the best plan based on your goals and get you set up in just a few minutes. Unlike competitors, we do not charge Assets Under Management or per-person fees that punish account holders for growth. Contact us to get started.