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Payroll Deductions
Use this calculator to help you determine the impact of changing your payroll deductions. You can enter your current payroll information and deductions, and then compare them to your proposed deductions. Try changing your withholdings, filing status or retirement savings and let the payroll deduction calculator show you the impact on your take home pay. This calculator has been updated to use the new withholding schedules and rules passed in "The Job and Growth Tax Relief Reconciliation Act of 2003".
Definitions
- 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), Annually (One paycheck per year). The default is Biweekly.
- 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. Each allowance you claim is equal to $3,000 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 2003, the maximum contribution to a 401(k) or 403(b) is $12,000 per year for individuals under 50 and $14,000 for individuals over 50.
- 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. Incomes over $87,000 that have already had the maximum FICA OASDI amount of $5394 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
- We calculate your Federal income tax withholdings by following these four steps:
- Take taxable gross wages times pay periods per year to compute your annual wage.
- Subtract the value of exemptions allowed ($3,000.00 times withholding allowance claimed)
- Determine annual tax with tables below (single and married respectively)
- The amount of tax is then divided 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 |
0% |
$0.00 |
|
$2,650.00 |
$9,700.00 |
$0.00 |
10% |
$2,650.00 |
|
$9,700.00 |
$30,800.00 |
$705.00 |
15% |
$9,700.00 |
|
$30,800.00 |
$65,800.00 |
$3,870.00 |
25% |
$30,800.00 |
|
$68,500.00 |
$148,700.00 |
$13,295.00 |
28% |
$68,500.00 |
|
$148,700.00 |
$321,200.00 |
$35,751.00 |
33% |
$148,700.00 |
|
$321,200.00 |
(no limit) |
$92,676.00 |
35% |
$321,200.00 |
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 |
0% |
$0.00 |
|
$ 8,000.00 |
$ 22,300.00 |
$0.00 |
10% |
$ 8,000.00 |
|
$ 22,300.00 |
$ 64,750.00 |
$1,430.00 |
15% |
$ 22,300.00 |
|
$ 64,750.00 |
$118,050.00 |
$7,797.50 |
25% |
$64,750.00 |
|
$118,050.00 |
$185,550.00 |
$21,122.50 |
28% |
$118,050.00 |
|
$185,550.00 |
$316,650.00 |
$40,022.50 |
33% |
$185,550.00 |
|
$326,100.00 |
(no limit) |
$86,404.00 |
35% |
$326,100.00 |
|
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