- 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.
- 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), and
Monthly (12 paychecks per year).
- 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 2006, each allowance you claim is equal to $3,300 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.
- State and Local Taxes
- This is the
percentage that will be deducted for state and local taxes. We take
your gross pay, minus $3,300 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.
- Pre-tax deductions
- Enter any payroll
deductions made by your employer that are made with pre-tax income.
This might include your health insurance, life insurance among other
pre-tax deductions.
- 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
2006, incomes over $94,200 that have already had the maximum FICA OASDI
amount of $5840.40 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 2006, this is $3,300 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 |
0% |
$0.00 |
|
$2,650.00 |
$9,800.00 |
$0.00 |
10% |
$2,650.00 |
|
$9,800.00 |
$31,500.00 |
$715.00 |
15% |
$9,800.00 |
|
$31,500.00 |
$69,750.00 |
$3,970.00 |
25% |
$31,500.00 |
|
$69,750.00 |
$151,950.00 |
$13,532.50 |
28% |
$69,750.00 |
|
$151,950.00 |
$328,250.00 |
$36,548.50 |
33% |
$151,950.00 |
|
$328,250.00 |
(no limit) |
$94,727.50 |
35% |
$328,250.00 |
|
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 |
$ 22,600.00 |
$0.00 |
10% |
$ 8,000.00 |
|
$ 22,600.00 |
$ 66,200.00 |
$1,460.00 |
15% |
$ 22,600.00 |
|
$ 66,200.00 |
$120,750.00 |
$8,000.00 |
25% |
$66,200.00 |
|
$120,750.00 |
$189,600.00 |
$21,637.50 |
28% |
$120,750.00 |
|
$189,600.00 |
$333,250.00 |
$40,915.50 |
33% |
$189,600.00 |
|
$333,250.00 |
(no limit) |
$88,320.00 |
35% |
$333,250.00 |
|
- Plan type
- Choose the type of plan your
employer sponsors. The choices are 401(k), 403(b) or 457. Your plan
choice will not affect the calculations, it is only used to label the
generated results.
- Plan withholding
- This is the percent of
your gross income you put into a taxable deferred retirement account
such as a 401(k), 403(b) or 457. 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. We compare the amount you enter here to the
minimal participation rate of 1%.
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 plan's contributions may be
limited to less than 80% of your income. Check with your plan
administrator for details. For 2006, the maximum contribution to a
401(k), 403(b) or 457 is $15,000 per year for individuals under 50 and
$20,000 for individuals over 50.
- Current age
- Your current age.
- Age of retirement
- Age you wish to retire.
This calculator assumes that the year you retire, you do not make any
contributions. So if you retire at age 65, your last contribution
happened when you were actually 64.
- Annual contribution limits
- Your total
contribution for one year is based on your annual salary times the
percent you contribute. However, your annual contribution is also
subject to certain maximum total contributions per year. The annual
maximum for 2006 is $15,000. If you are over 50, a "catch-up" provision
allows you to contribute additional $5,000 into your account. It is
also important to note that employer contributions do not affect an
employee's maximum annual contribution limit. The table below lists the
maximum contributions and catch-up contributions for each year through
2006.
Year | Employee Contribution limit | Additional "catch-up" contributions for workers 50+ |
2003 | $12,000
| $2,000 |
2004 | $13,000
| $3,000 |
2005 | $14,000
| $4,000 |
2006* and after | $15,000
| $5,000 |
It is important to note that some employees are subject to another
form of contribution limitations. Employees classified as "Highly
Compensated" may be subject to contribution limits based on their
employer's overall participation. If you expect your salary to be above
$95,000, you may need to contact your employer to see if these
additional contribution limits apply to you.
|