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Hourly Paycheck Calculator

Earnings
$0.00
Taxes
$0.00
Take Home
$0.00

Working of an Hourly Paycheck Calculator

An hourly paycheck calculator starts by taking the number of hours worked, multiplying it by hourly wages to calculate the gross pay. Other factors such as overtime and taxes and any other benefits are applied in order to calculate the net pay. Below mentioned is a step-by-step breakdown of the same.

  • Insert Hours Worked: Regular working hours and if overtime hours taken.
  • Insert Hourly Wages: Typical hourly rates and if any overtime rate.
  • Calculate Gross Pay: Regular working hours * Regular rate + Overtime hours * Overtime rate.
  • Insert Deductions: Deduct federal, state and local taxes.
  • Calculate Net Pay: Gross pay – total deductions.

 

Why Use Our Hourly Paycheck Calculator?

  • Easy and Quick: In just seconds you get your results from our dashboard.
  • Efficiency: Finishes the complex process of calculating earnings and deductions; saving your time in comparison to manual calculations.
  • Understanding Paychecks: Helps you in learning more about breakdown of your paycheck. 
  • Exact Earnings Calculation: This helps in determining your earnings based upon your hourly wages and the number of hours worked which includes factors such as overtime and bonus.

 

Hourly Paycheck Calculator FAQs:

What is Gross Pay?: Gross pay is the amount you earn before taxes and deductions are subtracted by your employer. Gross pay includes all the earnings like wages, bonus, overtime pay and several other forms of compensation. Gross pay is the beginning from which the net pay is being calculated.

What is Pay Frequency?: Pay frequency refers to how frequently an employee receives their wages from their employer. Some of the basic frequency are:

Weekly: Employees are paid once a week, on a particular day such as Wednesday.

Bi-Weekly: Employees are paid every two weeks, which results in 26 pay periods per year.

Semi-Monthly: Employees are paid twice a month generally on the 15th and on the last day of the month, which results in 24 pay periods per year.

Monthly: Employees are paid once a month, which results in 12 pay periods per year.

 

What is the Difference Between Bi-Weekly and Semi-Monthly?: 

Bi-Weekly Semi-Monthly
Frequency: Every two weeks Frequency: Twice a month
Pay Period: 26 Pay Period: 24
Basic Use: Used for employee pay schedule Basic Use: Used for employee pay schedule 
Consistency: Paydays are on the same day of the week             Consistency: Paydays are on a specific days each month

 

What is W-4 Form and Why it is Important?:

A W-4 form is also known as Employee Withholding Certificate which is a IRS form that employees in the United States finish and submit to their employer to find out their tax situation. The information provided on the W-4 form defines the amount of federal income tax that the employer should withhold from the employee’s paycheck.

 

Importance of W-4 Form: 

Accurate Tax Withholding: Make sure that the perfect amount of federal income tax is withheld, which helps in prevention of underpayment of taxes throughout the year. 

Tax Planning: Helps employees plan their finances by allowing them to adjust their withholding based upon the anticipated tax liabilities.

Avoid Penalties: Accurate withholding helps you in avoiding penalties and interest for underpayment of taxes.

What is FICA and Why is it on my Paystub?:

FICA stands for Federal Insurance Contributions Act. It is a U.S. federal payroll tax that is deducted from your paycheck. The funds collected from FICA are used to fund Social Security taxes and Medicare, two programs which provide benefits to the retired, disabled and children of deceased workers.

FICA taxes are compulsory and automatically subtracted from your paycheck by your employer. The employer also contributes an equal amount to both Social Security and Medicare on your behalf.

What is Net Pay?:

Net pay is also known as take-home pay which is the amount of money an employee receives after all deductions have been deducted from the gross pay. These deductions include federal and state income taxes, Social Security and Medicare taxes, retirement contributions and other benefits.