Ubiquity

Salary Paycheck Calculator

If you’re hesitant to begin saving in your 401(k) plan because you are worried about how it will affect your paycheck, you’re not alone. The Ubiquity Paycheck Calculator can demonstrate the effect of increasing contributions on your take-home pay–and how it may impact your financial future.

Complete the fields below to see how your 401(k) contribution change might affect your paycheck amount. Once you have completed your information you can print or email your report to keep for your records.


Ubiquity
44 Montgomery Street, Suite 3060
San Francisco, CA 94104

Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Try Our Other Useful 401(k) Calculator Tools

 

How to Calculate My Paycheck

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.

How to Calculate My Hourly Paycheck

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.

Weekly Paycheck Calculator

  • 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.

How to Calculate Taxes Taken From Paycheck?

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

How to Calculate Net Income

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.

How to Calculate Annual Income

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.

Have You Reviewed Your W4 for 2021?

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.

Contact Ubiquity to Plan for a Bright Future

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.

© 2021 Ubiquity Retirement + Savings
Privacy Policy
44 Montgomery Street, Suite 3060
San Francisco, CA 94104
Support: 855.401.4357

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© 2021 Ubiquity Retirement + Savings
Privacy Policy
44 Montgomery Street, Suite 3060
San Francisco, CA 94104
Support: 855.401.4357

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